If you’re a homeowner looking to sell your property in the near future, now is a great time to do so! The current real estate market is definitely favorable for sellers. With low home inventory, high demand, and generally rising home prices, the current real estate market is trending toward now being the best time to sell.
In this blog post, we’ll explore the reasons why it’s a good time to sell and provide tips on how to purchase a new home once you do sell.
Low Inventory and High Demand
Before the pandemic, home inventories were starting to dwindle as Boomers and Millennials both were vying for the same homes. One of the main reasons why it’s a good time to sell your home is due to the low inventory of available properties on the market and subsequent higher prices as a result.
Fewer homes are available for buyers to choose from and the increasing demand for homes that are for sale basically puts the real estate market firmly into the sellers’ hands. With more buyers than homes available, sellers are in a strong negotiating position, allowing them to potentially sell their property for a higher price.
Rising Home Prices
Another factor contributing to the current seller’s market is the rise in home prices. According to recent data from the National Association of Realtors, the median home price in the United States has increased by over 14% from the previous year.
This increase in home values is due to a combination of low inventory and high demand, as well as historically low interest rates, making it an excellent time to sell your home and potentially receive a higher profit. Granted, forecasts for the housing market are projected to cool down as we enter into the prime selling months but expect prices and the market to largely remain favorable for sellers.
In addition to low inventory and high demand, the current real estate market is experiencing historically low-interest rates even with the recent rise from the relative bottom. Low interest rates make it more affordable for buyers to purchase homes, increasing their purchasing power and potential willingness to pay more for a property.
For sellers, this means that they may have a larger pool of potential buyers, possibly resulting in multiple offers and bidding wars, which could drive up the sale price and increase your overall earnings from a home sale.
Tips for Purchasing a New Home
If you end up deciding to sell, you may be thinking about purchasing a new home. Once you’ve decided to sell your home, you’ll need to start thinking about purchasing a new property and weighing the possibilities of even building a new home from scratch. Here are a few tips to help make the process smoother:
Work with a real estate agent: A real estate agent can help you navigate the process of purchasing a new home, from finding properties that meet your needs to negotiating the sale price. Local agents, especially, can be a huge boon to buyers looking to find the right home at the right price.
Research the market: Just as you did when selling your home, it’s important to research the current real estate market to get a sense of what properties are available and what prices you can expect to pay. Both your agent and your lender can help lead you in the right direction, but do yourself a favor and get ahead of the curve.
Consider your needs: When looking for a new home, think about your needs and priorities. Do you need a certain number of bedrooms or bathrooms? Is location important to you? Knowing what you’re looking for can help you narrow down your search.
Get pre-qualified for a mortgage: Before you start shopping for a new home, it’s important to get pre-qualified for a mortgage. This will give you an idea of what you can afford and help you narrow down your search and eliminate time lost from searching outside of your price range. If you are ready to get pre-qualified, call one of our experienced loan officers today!