In light of the effect COVID-19 is having on the economy, many are uncertain what to do when it comes to their real estate holdings. The other day I outlined 3 main economic factors that I believe will effect the future of the real estate market. There are many factors that serve as economic indicators but to keep it simple, I stuck to my top three. Given the logical impact of those 3 factors, here are my reasons why you should sell now or wait.
The 1st question to ask yourself is how comfortable you are staying where you are for the foreseeable future. Is your payment too high? Is all of your equity tied up in your home? Do you need that second home right now? Is your home the right size for you? You get the point. If you think you will need or want to sell in the next 5 years, my suggestion is to sell now. And here’s why…
It’s a wild time in real estate right now when it’s actually a good time to buy and sell. Typically, it favors one side more than the other, hence the terms “Buyer’s Market” and “Seller’s Market”. Rarely is it a good time to act for both sides of the market so let me explain.
If you sell now, you can still sell at the top of the market. If you’re a buyer, you will be able to lock in during one of the lowest mortgage rate periods in history! You’ll be able to enjoy that low rate for the life of your loan, maybe even 30 years! The Fed can only remain at these historically low rates for so long. Eventually they are going to adjust the rate and the only way it can go is up!
As a side note, if you are in the rental market beware! As unemployment forces homeowners to downsize, you can expect increased demand for the already too few rentals out there. Couple this with increasing demand from a growing population and watch rental rates continue to rise.
Okay, enough about buyers, this post is about your decision to sell your real estate. Here is my perspective on the reasons why you should sell now and not wait.
Inventory is extremely low! This means that we’re still in a Seller’s Market in most areas and price points around Lake Norman. As crazy as it sounds with everything I explained about the economic indicators, we are still seeing properties that come on the market get immediate attention and multiple offers. With low supply and pent up buyer demand due to COVID-19 restrictions properties are selling in less time and for more money.
We will have an influx of new buyers coming into the market as soon as restrictions lift and it’s already starting to happen! I think the next 30-90 days are going to provide a special window of opportunity for Sellers to capture the top of the market and capitalize on a strong negotiation position due to the low inventory. But beware! If you wait too long, you will be behind the curve and lost in the flood of new inventory coming to the market. This surge of new inventory will immediately change the dynamic of the market, moving it away from a sellers market into a buyers market. In other words, the value of your property will drop!
Lending will tighten up and become more restricted as the economy changes. We have already begun to see this happen. It’s better to position yourselves correctly [sell now] while the market and the rates are still favorable as opposed to waiting until you are in a position where you have to sell, despite market conditions at that time. Waiting could very easily result in a double whammy. You getting less for your home while also paying a higher interest rate or rental amount on your next move.
In my almost 20 years as an agent, I’ve never felt stronger about a message that the marketplace needs to hear. None of us know what the future holds. But having been a Realtor® through the financial crisis of 2007-09, I sat in living rooms with families as they lost their homes and everything they had. We didn’t get as much of a warning that time. So I feel blessed that we now have this window of time to react to the current situation.
Whether or not you think you should sell now or wait, if you’re considering putting your house on the market, let’s connect today. There is a high probability a motivated buyer is looking for a home just like yours.
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