Should You Wait Until Spring to Sell?
Typically, winter is a slower time for home sales, but after a crazy year like this last, a lot of people are wondering if there is any hope of finding a buyer.
After the ground starts to freeze, the housing market follows, usually, but this year real estate professionals are predicting that will not be the case.
This optimism stems back from, you guessed it, the COVID-19 shutdown, which created a pent-up demand for new homes throughout most of 2020. The housing market was completely swamped after shutdown and the overwhelming demand for housing is still going strong today, over a year later. We, as real estate professionals, had an unusual year due to COVID-19 and while 2021 has been much more “usual” according to Danielle Hale, chief economist of Realtor.com, from March all the way into October, “homes were selling faster than the fastest-selling months in any previous year.”
Because demand is still very high and inventory is low, winter is likely to be a better time to sell than winter typically is. Although the homebuyers currently in the market may be slightly lower than during the busy spring and summer months, homebuyers are still very serious and motivated to buy. Many sellers should not feel the need to wait until spring, especially if their home is located in a high-demand area.
Another reason selling now may be beneficial is because house prices are at an all time high, up about 9% from a year ago, and there are signs that these high prices are leveling off. Real estate professionals are predicting that housing prices will be higher than a year ago, but might be a bit lower compared to what occurred this summer.
Interest rates are slowly creeping up from where it was sitting before, making it the time to buy before rates are too high! Buyers will be looking to find their NextHome before rates raise to an estimated 3.1% by the end of 2021 and an estimated 4% by the end of 2022, according to Mortgage Bankers Association. These rates could very well discourage buyers from being as motivated moving forward.
All-in-all, we are saying that just because the winter housing market in the past has not been ideal, we do not foresee it being that way this year! Going into winter now, the demand for homes is still high and the interest rates and home inventory are still low making it a good time to sell no matter the season!