3 Reasons You Should Sell Your House in 2021
Tampa’s potential homebuyers are waiting in the wings, eager to make a move, but there is a very low supply of homes available for purchase. As a result, it remains a seller’s market that is richly rewarding the homeowners who choose to sell now.
If you’re on the fence about selling, you may be considering these three options: 1) Putting your house up for sale now to take advantage of current demand 2) Waiting out the pandemic for a better picture of the economy or 3) Staying put for the foreseeable future. Here are three reasons you should take the leap:
SELL BEFORE INTEREST RATES RISE
Even before the first known coronavirus cases in the US, economists predicted mortgage rates would remain below 4% for most of 2020. The pandemic only served to drive them even lower. In fact, the January 2021 average mortgage interest rate was the nation’s lowest—ever.
While the low rates allow buyers to get more house for the money, there are not enough properties on the market for the number of buyers. Because of this, rising prices will eventually start balancing out low rates. As prices rise, the number of buyers will decrease and the supply of homes will increase.
So, whether you are simply selling your current house, or are planning to both sell your current house and buy a new one, you want to strike at a time when you can sell your current house quickly (and for a very healthy price), and are still able to take advantage of historically low mortgage rates on the purchase of your new home. That time is now! Compare the difference in a 30-year mortgage on a $750,000 house.
The difference between 2.75% and 3.5%
Monthly payment $3062 versus $3368
Total interest paid $352,251 versus $462,421
Total of 360 payments $1,102,251 versus $1,212,421
SELL IF YOU HAVE A STARTER HOME
Entry-level homes are typically considered to be those priced in the lower third of home sales for a given area. These starter homes, often purchased by first-time homebuyers, will see plenty of buyer activity through the rest of the year.
Danielle Hale, chief economist for realtor.com, explains that the lack of available homes on the market creates opportunities for sellers to benefit from eager buyers. “Anyone who’s looking to sell is going to get a healthy price,” Hale says.
SELL IF YOU NEED TO MOVE
If you need to move, say for a job change, the lack of inventory will help your home sell fast, and for a healthy price. Unfortunately, the motivation for a move isn’t always a positive one. If you lost your job, you are probably worried about your ability to keep paying your mortgage. If that’s the case, selling your house in these conditions may be a very good option.
Carrie Rowland is an Accredited Buyer’s Representative,® Certified Probate Real Estate Specialist,® Military Relocation Professional,® Graduate of the Realtor Institute® and a Realtor-Associate at RE/MAX Alliance Group in South Tampa
