3 Reasons Why It’s a Seller’s Market

Thinking about selling your home? Now is the ideal time to get it on the market, and here are three compelling reasons why:

  • Low interest rates. If you read last week’s post, you know that interest rates are at an all-time low, which means buyers are motivated to borrow money and pull the trigger on purchasing their dream home.
  • Low inventory. The year of the pandemic created a windfall in the U.S. housing market, with more and more people committed to living their best life in a home they love. Many left the crowded urban markets to relocate to smaller towns to improve their quality of life. The beach cities of the South Bay are no exception - inventory of available properties here fell 12.1% between November and December of 2020 alone*. Your prospective buyer may be out there just waiting for an opportunity to own in one of the South Bay’s picturesque seaside communities.

  • Prices are rising. With the lack of available inventory, home prices are on the rise. According to realtor.com, the median U.S. home price is up 11% YOY (year-over-year) as of September 2020, with active listings down 39%. With inventory continuing to drop, homes are flying off the market at a rapid pace, equaling top-dollar potential in selling your home before the market shifts. Lawrence Yun, chief economist of the National Association of Realtors, predicts that new-home sales will jump 21% and existing-home sales will increase by 9% in 2021. “The consequent rise in home prices have boosted wealth accumulation for homeowners,” Yun said^.

The impact of COVID-19 on the current housing market indicates that historically low mortgage rates, low inventory and rising prices will continue in the foreseeable future. The pandemic has prioritized quality of life for all of us and will continue to impact home-buying, making today the ultimate seller’s market.

Deciding to Sell