The coronavirus and the presidential election has made 2020 a year for the history books! As chaotic as the year was, it’s completely understandable that sellers decided to put their plans on hold and remove their houses from the market. However, now that there are two vaccines available, you might feel more confident in re-entering the market.
1. Low interest rates
The pandemic has caused the economy to take a nosedive and in an effort to prevent a complete collapse, the Federal Reserve did what it could. One of the things that happened was mortgage rates plummeted to an all-time low and it’s predicted to stay that way for the rest of the year. Agents also say that it is because of these low interest rates that they’re seeing a huge surge of buyers entering the market!
It’s worth noting that real estate agents believe that as the vaccine is distributed and the economy picks back up, the interest rates are going to start to increase.
2. Low inventory
As the pandemic ravaged the nation, folks whose houses were already on the market got cold feet and started pulling them off the market. Or, they would put the listing on pause until they got a better idea of how the virus was being handled. This resulted in an inventory shortage. Many agents say they only have about a month’s worth of inventory, which is alarming as a good market typically has four to six months of inventory.
3. Seller’s market
The lack of inventory is a good thing if you’re thinking about putting your house on the market! With so many buyers entering the market and there not being enough houses to satisfy demand, it will all work out in your favor. Not only will your house appeal to more buyers, but those buyers will be chomping at the bit to submit a competitive offer on your house. Heck, it’s so competitive in some markets that agents say they’re seeing more bidding wars, clean offers, and some folks are even submitting bids without actually seeing the house in person. At Harcourts Desert Homes, their licensed realtors palm springs will help to make the process of selling your home as straightforward as possible.
4. Home prices will increase
We mentioned that folks are willing to engage in bidding wars which increases the price of the home, but because it’s a seller’s market, sellers can also increase their asking price. Now, you may think that this is your chance to rake in the big bucks, but you can’t do that! If your house is priced too high, the appraisal company may not approve the buyer’s loan – they don’t want to lend more money than the house is worth. If that happens, the deal could fall through and you’d have to go through the whole process over again!
2020 was a wild ride that tested our mettle in more ways than one. We’ve had to adapt to a new way of life, we’ve had to overcome some difficult challenges, and we’ve managed to find our way. For those who need to sell, now is the perfect time to do so because the market is in your favor. However, if you need to sell quickly for one reason or another, you should get some advice for a quick home sale from your real estate agent. They’ll give you the advice and guidance you’ll need to get everything your house is worth.