With everything that’s going on in the world right now, many wonder if 2021 is a good time to sell a house. The correct answer would be: maybe.
2020 was a difficult year, so people are fearing to even make a predictions about 2021. Still, some assumptions have been made that make it somewhat possible to imagine what the near future holds for us. While the 2020 crisis dropped the activities on the housing market due to closing-down businesses and stay-at-home orders, it quickly rebounded. Now, experts are predicting rising home prices and high demand. Even now we can see the lower supply, as well as the slow but steady rise in prices.
If you’re wondering should you sell a house in 2021, there are a few things you should consider. While there are some reasons why you definitely should sell, there are a few reasons against it. We have gathered the three strongest arguments for, and the three strongest arguments against home selling in 2021. Let’s begin.
Reasons Why You Should Sell Your Home in 2021
2021 seems to have a few advantages up its sleeve. Below are some reasons why you should sell a house this year.
Low Interest Rates
Even before the COVID-19 came to the US, experts from the field of economy and real estate predicted that 2020 would leave mortgage interest rates under 4% for the biggest part of 2020. Then, the pandemic happened, and dropped the rates down even further. According to Freddie Mac, the average interest rate for a 30-year, fixed mortgage in the middle of December reached the record low of 2.71%. In fact, since the pandemic started, the mortgage interest rates hit the record several times.
The low interest rates mean the probable increase in the amount of buyers, while the housing supply is supposed to remain low. This allows the prices to rise, so sellers can benefit more, while the buyers will pay the same amount as before the crisis. While the interest rates are predicted to slowly rise, they are still supposed to stay low compared to most historical averages.
Entry-Level Homes Are Sought After
In a market such as we’re living in, starter homes are more desired than other types of homes. Homes at entry-level prices are predicted to have plenty of interested buyers throughout the following year. What is considered a starter home might vary depending on the area you live in, but you are certain to earn a fine amount if you’re selling a cute little affordable family home.
You Need to Move
This is one of those reasons why you might have no choice but to sell a house, no matter the year. If you need to move, you shouldn’t wait for a better time. Take advantage of what you have now, even if the reason for the move isn’t the prettiest. A good idea is to sell a house to a direct buyer in Milwaukee, such as Sparks Property Investors LLC, as they will be able to buy your property and close the sale in just seven days. As they’ll pay in cash, you’ll quickly have enough money to go on with your move, or to purchase a new property if this is what you need. With direct buyers, there are no commissions or any other expenses. You can go on and start a new life as quickly as possible, something that isn’t possible when selling your house the traditional way.
Reasons Why You Shouldn’t Sell a House in 2021
While there are a few very good reasons why you should rush to sell a house, some occasions might mean it’s better for you to wait for a little while. Here are some of them.
You Have Just Refinanced
Low interest rates caused many homeowners to refinance their mortgage in 2020. If you are one of them, then there is no reason to sell a house right now. Your refinanced mortgage can help you with your finances for long enough that you don’t really need to sell until the market becomes more stable again. In fact, refinancing might be a good alternative to selling, and you could consider it if you are experiencing financial struggles.
You Can’t Afford Next Purchase
Many people lost their jobs in 2020. Even if you’re not one of them, there are many ways in which you might be struggling, even if it’s just the fear of possible layoffs. All of these scenarios can cause you to panic, as the financial future is uncertain for most. This is one of the main reasons why you might want to consider delaying the sale. While it doesn’t have to mean anything will happen to your income (and we hope it won’t), it might be smarter to just wait a bit. If for any reason you want to sell a house now, despite the fear, consider working with a direct buyer, as they can help you profit faster.
Worried About Finding a New Home
There is a shortage of homes on the Milwaukee market, and this might not be the right time to find a perfect home. Many people find it extremely hard to find a property that is up to their standards or that fits in their budget. Chances are you might not be able to find the right home for a while. If this worries you, maybe you should wait for a bit longer. The market is bound to balance someday, and you don’t want anything to hinder the chances of having a roof over your head.