What a strange year this has been so far. After several shocking news in the first quarter of the year, the second quarter was tougher. Instead of spending spring lounging somewhere on a beach, we were all forced to self-quarantine and stay indoors as much as possible. This is worse for those who had plans to sell their properties by organizing open homes during spring.
Many of those who planned to sell their homes went the other route. They held back, thinking that house prices are down because of the coronavirus.
Isn’t it frustrating that after all your hard work in calling an EICR for your property and doing renovations to attract potential buyers, you’re left with it until who knows when? The good news is that it’s still possible to sell your home now for the price you want for it. The housing market is not like the stock market. It’s a bit more stable.
It doesn’t go down 2,000 points today and go back up 1,200 points tomorrow. It doesn’t go up and down like the stock market. If it declines, it’s going to remain there for quite a while. If it’s up, then take advantage of the housing prices because you may not have the chance again.
House Prices Are Up
Many people thought that house prices are going to fall because of the outbreak. They did not. While there was a 15.7% decline in the number of houses for sale in March when the World Health Organization (WHO) first categorized coronavirus as a pandemic, the national median listing grew by 3.8%. And even all the way to spring, home prices remained steady. It was a window of opportunity you might have missed because you didn’t discuss it with your real estate agent.
Don’t Wait It Out
Housing prices are bound to decline. While they’re still in a good position now, experts predict they will begin to drop by the end of this year and until next. Who knows when the pandemic will end? It continues to beat economies to the ground. Many predict the housing market will go under because of the pressure from the recession and extreme job loss.
So, don’t wait until this happens. While you may not get the exact price you want for your house, this could be the best time to sell your property given the state of the economy and political uncertainties. Waiting it out might work against you.
Price Your Property Right
Even in such a troubled economy, you can still sell your house if it’s priced right. Some properties sell faster because their price points are competitive. Homes in the $180,000 price range move faster because of the price. Although those in the $200,000 to $400,000 range still have a good chance of being sold, they cannot move as fast as those in the $180,000 price range.
Talk to Your Real Estate Agent
Who knows the market better than your real estate agent? Talk to your brokers. They have a pretty good idea if this is your best chance to sell your property. Since they are going to get a commission from the sale of your house, it is much as an interest to them to sell your house at a higher price as it is to you.
People Want to Downsize
After two months of decline, the home market shot up to 44% in May. This was the single-biggest month-over-month jump since 2001. Apparently, the home market is back with a vengeance. People want to downsize. They want to move to smaller cities and towns. They are moving away from cities because of economic turbulence and the threat of the pandemic.
For the foreseeable future, people might have to work from their homes. This means that instead of paying the mortgage in the big cities, they can move to the countryside where life is slower, and the cost of living is cheaper. Simply said, in smaller cities, people are going to get more bang for their buck.
Mortgage Interests are Low
People are shopping for homes because interest rates are low. Banks are trying to attract borrowers, so they are lowering their interest rates to get more contracts signed. Reports said that some banks are offering a 3.07% interest rate for a fixed 30-year mortgage. Over the lifetime of a loan, homes can cost tens of thousands less than normal.
The housing market is on a slight uptick, but it won’t last long. If you’re planning to sell your house within the next two years, think about doing it now. Talk with your real estate broker about the possibility of joining the housing market today.