Last year, buyer demand increased due to record low mortgage rates. Because of those low mortgage rates and fewer houses on the market, home prices went up. We know now, the last half of 2020 was a seller’s market. But will 2021 be the same? If you’re wondering if this is a good time to sell your house, let’s look at the pros and cons of selling now.
Low-interest rates are great for potential buyers. They make monthly mortgage payments more affordable! Why is this a good thing for sellers, you ask? While experts expect interest rates to remain steady in 2021, there will still be a low supply of houses on the market, meaning that home prices will rise and sellers will walk away with a good chunk of change.
Last year featured a huge refinance boom. As interest rates dropped, homeowners took advantage and refinanced their mortgages at lower rates. If you recently refinanced your house, you’re probably in a better place to afford your current mortgage than if you were to buy something new.
According to the Mortgage Bankers Association, approximately 2.8 million homeowners are in forbearance plans. If you are in forbearance, you can still sell your house, but the money you haven’t paid will increase your total payoff (which includes any interest you owe). If your forbearance plan due to end and you’re still struggling, talk to your lender about an extension.
If you live in an area where home prices are skyrocketing, it might be a good time to sell your home. U.S. home prices have doubled in the last decade, according to Zillow. In recent months, some cities, in particular, have experienced many booms in home prices. For example, in 2010, the average home price in Denver, Colorado, was $246,680. The average home price in 2020 was $464,068,
The economy is starting to recover, but that doesn’t mean everyone’s back on track. If you’re waiting to go back to work after being furloughed, or you’re worried your employer will be making layoffs, you might be thinking it’s an excellent time to sell your house and purchase something cheaper.
Keep in mind, though, a great deal of money goes into buying a new house (regardless of the property type). Besides a down payment, you’ll have to pay closing costs, property taxes, insurance, etc. The costs add up quickly. And if your income isn’t stable, you might struggle to make ends meet.
Instead of selling your house, talk to your lender about refinancing or entering a forbearance plan to alleviate financial stress.If you decide this is the time to sell, ask yourself, do I want a fast sale? Do I want to avoid the open houses, people walking through my house, and the negotiations over price. If what you want is a cash sale, fast closing, and no worries about fixing any problems with your home, then you need to call Styl Properties, Inc.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577.