Why 2020 May Be The Best Time to Sell Your home
If you bought your house just recently or in the past few years and you still don't want to part with it because of all the love you got for it, go ahead and wait another 8 years before revisiting the thought of selling. But if you're weighing your options, whether to sell this year or next, don't play the waiting game. Here's why;
Tiffany Ngesa
1. Mortgage interest rates are low
Interest rates are expected to remain low throughout 2020 as the Federal Reserve left interest rates unchanged in December 2019 with the target range of 1.5% to 1.75% and noted it's intention to keep them as they are throughout 2020.
Also, according to Mac Freddie's 2nd July report , average interest rates recently reached a record low of 3% for a 30 year fixed mortgage. This simply means that homes could potentially cost thousands less over to the lifetime of the loan as mortgage purchase applications have shot high since last year.
2. New buyers are always entering the market
If your home is considered in the entry level or middle level price range for your city, this is your time to shine! Expect to have interested buyers real quick because the biggest wave of homebuyers will continue to be millennials,who are mostly first time buyers.
Depending on where you live though,you may see the youngest generation of adults breaking into home ownership as well.
3. High Equity should be your added advantage
"I've been eyeing the house across the street for years,glad I can get it now that it's on sale ." Most of you have heard this statement more than once from more than one person.
If you've had your home for a long time, you've been surely building equity as the property value increases as long as you make consistent mortgage payments. With this, you're likely to make more profit than you ever thought you could. In turn,it can be used for a larger down payment on your next house ,other expenses or even savings.
The higher your equity, the higher the profit!
4. No one knows what the future holds
According to most outlook 2019 surveys, no professional forecaster expects a recession in 2020, though the GPD growth is expected to slow down. On the other hand,2021, as research has proven,is a completely different story:60% chances have been estimated by respondents of a recession.
There's no need to fear a housing crisis like the one that occured in the last recession (December 2007-June 2009),when you can sell your home now. If you've felt an itch to move, consider selling this year as opposed to the next because the economic changes 2021 have to offer are less desirable. It's wiser to sell in an environment that's more predictable.
5. Home prices have gone up
"Home asking price growth is actually higher now than it was before the pandemic,"Hade,a real estate professional explains. According to most real estate professionals, single family home prices increased in most markets during the first quarter of 2020,with the price increasing by 7.5% to over Ksh 25 million. This news may come as a surprise to sellers since it was expected that home prices would drop during a pandemic. However,that's quite the contrary.
6. Most buyers' needs have changed over the pandemic
With the idea of working from home in place, people have been spending more time at home compared to most places. This,in turn, has sparked a fresh deluge of home buyers whose current homes no longer seems as comfortable or roomy as they were during pre-covid.
For example,most people with not-so spacious rooms and large families would rather move to bigger houses so as to create their own "offices" for a peaceful environment. Spending months locked up at home has taught a lot of people that where they live is important hence trading up because up because they've spent more time than they ever have and realized it doesn't meet their needs anymore.
7. You can't afford your house anymore
It is possible to sell your home and find a new one if you need to move regardless of stay at home orders .
This is because you are certainly not the only one moving because you need to,most people can't afford their homes anymore. Due to the wobbly economy, the need to move may not be as positive as it always is, especially if you lost your job. But thinking of it as a time to work on your budget before you finally get back on your feet may make it less scary.
What's the essence of staying in a home you can't afford anymore anyway?
Conclusion
With all the continued threat of the novel coronavirus,a shaky economy and lay off's happening everywhere being sceptical about putting your home on sale is totally understandable.
However,the irony is that many real estate experts believe this could be one of the best times you'll ever find to sell your house.
