Thriving seller’s markets continue across much of the US, leaving some landlords and homeowners wondering – is now the time to sell? As the COVID-19 pandemic fears continue to wane, many individuals are still experiencing personal and financial uncertainty. However, if you have any interest in selling, time is of the essence as the housing market continues to ramp up this Summer. Join us below as we break down the top 5 reasons to sell your home now!
Top 5 Reasons to Sell Your Home Now
Deciding to sell your home now rather than later is a big decision. Ideally, homeowners want to sell when demand is high and inventory is low. Therefore, driving competition among buyers and offering the opportunity to sell faster and for more money. So, is now that time? Read on below for the top 5 reasons to sell your home now.
- Mortgage Rates are Climbing
- Demand Remains High
- Supply is Slow to Catch Up
- High Appreciation and Home Prices
- Your Own Situation Has Changed
Mortgage Rates are Climbing
During the last part of 2020, heading into 2021, mortgage rates fell to near record lows. Therefore, fueling more buyers to enter the market and search for their dream home. So, as more buyers find favorable mortgage options, it fuels demand, which is great news for sellers. However, rates are beginning to climb. Thus, mortgage rates are less attractive than they have been over the past several months. While there is no way to predict where rates will go from here, the slight upturn is one of the best reasons to sell your home now.
Demand Remains High
Successfully selling a home requires attention from competitive buyers looking to take advantage of low-interest rates. Currently, demand for homes, especially in the suburbs, remains strong. Thus, contributing to a booming seller’s market. According to estimates from Freddie Mac, home sales will top 7 million in 2021. According to the National Association of Realtors, young adults and families make up the largest percentage of home buyers at 38%.
Supply is Slow to Catch Up
The COVID-19 pandemic delayed many new construction builds, and rising material costs have led to builders focusing on luxury homes where they can make a better profit. Furthermore, a shortage of existing homes means that homes are selling just as fast as they are hitting the market in many areas. However, sales rates are beginning to slow, which is one of the best reasons to sell your home now rather than later. According to 69% of surveyed Zillow Home Price Expectations (ZHPE) panelists, an available home inventory will continue growing into the second half of 2021 and the beginning of 2022. For sellers, more inventory equals increased competition for buyer’s attention.
High Appreciation and Home Prices
During the end of 2020, homeowners gained an average of $17,000 in equity, according to data from CoreLogic. Furthermore, those numbers continue to grow as home values appreciate. Many homeowners choose to cash in on this equity and use it to purchase up in search of their own dream home. This added equity and other favorable market conditions such as high demand and low supply create an ideal time to sell. While many sellers feared the pandemic would cause prices to fall, in fact, the opposite has become a reality.
Your Own Situation Has Changed
The last year has seen many changes for everyone due to the COVID-19 pandemic. Whether it’s working from home, hybrid schooling, or just a need for extra space, the pandemic caused many homeowners to reevaluate their own living situation. Perhaps commuting to work is no longer a need, or you have grown tired of the local area and seek more open space or additional amenities. Therefore, one of the most significant reasons to sell your home now is for your own benefit. Now is the time to capitalize on the favorable seller’s market while you still can.
Reasons to Rent Your Home vs. Selling
In some markets, renting your home may be better than selling right now for some owners or investors. Although eviction bans and non-paying tenants have burnt landlords in many markets, rental rates are strong. Therefore, deciding what to do with your home or investment property takes careful consideration. So, let’s review a few reasons to consider renting over selling right now if you are on the fence.
- Local Rental Demand is High – Many cities across the US such as Seattle, Austin, Orlando, and Phoenix are experiencing great rental growth rates making becoming a landlord a potentially profitable endeavor. If your neighborhood is popular and you are willing to take on the added responsibility to make long-term passive income, check out what your rental may be worth.
- You Have What Renters Want – Certain types of homes with desirable amenities can fetch a hefty rental sum in some areas. So, after careful analysis of the local market, renting could prove profitable if your home stacks up against the competition. Ideally, renters prefer newer appliances, hardwood flooring, included parking, outdoor entertainment space, and proximity to local amenities.
- Expected Profit Potential – The decision to rent or sell is heavily leveraged by various numbers and calculations. This due diligence in real estate helps owners understand the potential of their home to produce consistent and positive cash flow. Therefore, all of these numbers must be carefully considered before making a final choice.
Not Ready to Sell? Rent Your Home with Professional Management!
Despite favorable market conditions, not every homeowner is ready to sell. Sometimes holding onto the property to capitalize on a growing rental market demand may be the better investment. That said, choosing to become a landlord requires a large commitment of time, effort, and money. Landlords must effectively market and manage upkeep on their property while dealing with tenant communications and rent collection.
One of the best ways to maximize profits in a rental business is to hire professional property managers. At Bay Property Management Group, our dedicated team evaluates your rental situation and helps guide you toward a profitable and rewarding ownership experience. Whether it is aggressive marketing to find a qualified tenant or handling ongoing maintenance needs, BMG handles the day-to-day operations for you. Give us a call today for a free, no-obligation rental home analysis.