Will Mortgage Rates Remain Low in 2021?
With high demand, rising prices and low inventory, now may seem like the perfect time to sell your home. It’s a seller’s market, which means that you may be able to close the deal on your ideal terms.
But with the pandemic still tightening its grip on the country and an uncertain future, many sellers are still apprehensive about listing their homes. Data from Zillow shows the top reasons why homeowners are not putting their homes on the market right now:
34% believe life is too uncertain
31% are concerned about financial uncertainty
25% are concerned about COVID-19
If you’re still on the fence about selling for one or all of these reasons, there are a few things to consider.
Home Values are Rising at the Fastest Pace in 15 Years
A new report from Zillow shows that home values are rising faster than any other time since 2005.
The high demand for homes has led to more sales than at any other time in the last 15 years. The seasonally adjusted annualized rate (SAAR) for October home sales hit 6.85 million, which was the fastest pace since 2005, according to the National Association of Realtors. It doesn’t look like the pace will be slowing any time soon.
Zillow’s economists are projecting an average 6.42 million sales through September 2021, which would make it the strongest year for home sales since 2006.
Home value growth increased to 1% month over month in October. That's the fastest rate since 2005. Typical home values now sit at $262,604.
In Zillow’s most recent report, no major metro area saw a decline in home values from September through October.
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Overall, home values are up 6.6% year over year, according to Zillow.
Low inventory is a major driver of the home value spike. According to data from Realtor.com, national inventory is down 36% over the year. The four-month supply has reached the lowest level in 16 years.
Real Estate Agents are Taking the Right Precautions
The market is just right for sellers, but what about safety? Is it really safe to sell your home right now?
Real estate agents are leveraging technology to make the home selling process as safe as possible through the use of:
High quality photos of the property
Video chats with agents
Detailed listing and neighborhood information
All of these tools allow buyers to get a good look at a home without having to physically step into one. With this approach, only the most serious of buyers will be entering your home.
In-Person Showings Follow NAR Guidelines
For serious buyers who want to see the home in person, agents are following the National Association of Realtors (NAR) guidelines as well as local and state guidelines. These safety protocols include:
Ensuring that guests are wearing masks and social distancing
Limiting in-person activity
Ensuring guests wash their hands or use alcohol-based hand sanitizer before and after the showing
Removing shoes before entering or using shoe coverings
Many sellers are choosing to only allow buyers who are pre-approved for a mortgage to physically enter their homes.
The red-hot housing market makes it a great time to sell your home. The pandemic has changed the way showings and sales take place, but a focus on safety is allowing many homeowners to sell their homes with minimal risk.