Why NOW is the best time to sell your home
If you’ve been thinking about making a move - whether it be to upgrade, downsize, or move to a new location, you may be wondering when the right time to sell your home will be this year. Many homeowners wait until the spring to start considering, but the real estate market has been booming ever since 2020, and these results have carried into the beginning of 2021. In fact, the market is hotter than EVER before, and that’s something to take advantage of!
Below are just a few of the many reasons why now is the best time to sell your home, and why you shouldn’t wait to do so.
1. Buyer demand is higher than ever
Buyer demand has skyrocketed all over the country - and due to a large increase in the desire for vacation homes with woods, water, and more outdoor space, demand in Minnesota has seen a significant increase specifically! Minnesota has seen a 16% increase in home sales since last year, and the percentage continues to grow. What does this mean for you as a seller? There are LOTS of buyers out there that are bound to be looking for a home just like yours. Buyers are more competitive than ever, meaning you will most likely receive more of a variety of offers, and can sell on your own terms!
2. Mortgage Rates are the lowest they’ve ever been
In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. What this means is that it is less expensive to borrow money for a home loan today than it has been in years past. More buyers are qualifying for homes that wouldn't have qualified at a higher interest rate. All of this results in more buyers eager to look for a new home, and they are more likely to pay more for one!
3. Inventory is extremely low
Nationally, we are seeing a shortage in inventory, meaning there are not enough homes to meet buyer demands. According to the National Association of Realtors (NAR), inventory available today is 2.3-month supply at the current sales pace, which is down from a 2.5-month supply. This record-low inventory is not even half of what we need for a normal or neutral housing market, which should have a 6.0-month supply. In Minnesota specifically, there has been a 36% percent drop in inventory. As a seller, this is a very good thing. This not only plays into receiving more offers and being able to sell on your own terms, but it means that your home will have less competition and thus more eyes on it. Due to this low inventory and high buyer demand, homes are selling faster than ever - your home will probably spend less time than average on the market.
4. Home Equity is rising Today’s low inventory of homes on the market is contributing to home price appreciation. Homes are worth more than they ever have been before, because a home for sale is so hard to find! In Minnesota, home prices went up 9.3% in 2020 compared to 2019, from $259,000 to $283,075 - and they are expected to stay consistent (if not increase) in early 2021. That means your home’s market value has likely risen, and you could be selling your home for more money than ever before!
Although the outlook of the real estate market continues to look optimistic for early 2021, these numbers are likely to change later on in the year. It is important to take advantage of this seller’s market and make a move now before things change! These record numbers mean a quick and satisfying selling experience, having the opportunity to negotiate the best possible contracts with buyers who are up against intense competition for finding their dream home.
This sweet spot won’t last forever - come talk to us before more homes are put on the market! We are currently working with multiple different buyers who are eager to find their next home and we might be able to sell your home before it even hits the market