If you’re thinking of moving, remember that as a homeowner, you may have more equity in your house than you realize. Using it to make a move to a new home while interest rates are still low may be the best decision you could make.
A seller will always negotiate the best deal when demand is high and supply is low. Hello, I’m Cheryl Hazel with The Cheryl Hazel Team and AllHomesInSouthFlorida.com. I specialize in Fine Homes and Waterfront homes.
HOME APPRECIATION, SUPPLY, AND DEMAND
Purchaser demand is so high, the market is running out of available homes to buy. Danielle Hale, Chief Economist at realtor.com, explains: “For most sellers listing sooner rather than later could really pay off with less competition from other sellers and potentially a higher sales price.
They’ll also avoid some big unknowns lurking later in the year, namely another possible surge in COVID cases, rising interest rates, and the potential for more sellers to enter the market.” The National Association of Realtors (NAR) says, “Supply will remain tight given the huge gap between a desired 6 months of inventory of homes on the market compared to the current.
Freddie Mac says, “We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021.” The dramatic rise in home values happened when the inventory of houses for sale reached historic lows at the same time buyer demand skyrocketed as a result of record-low mortgage rates.
Home price appreciation will continue to be determined by an imbalance of supply and demand. If supply remains low and demands high, prices will continue to increase, making it a great time to sell your house.
TWO REASONS YOU MUST KNOW
There are 2 reasons driving speculation that the inventory shortage will ease somewhat as we move through the year:
1. As the health crisis subsides, more homeowners will be comfortable putting their houses on the market.
2. Some households impacted financially by the pandemic will be forced to sell. With equity growing so significantly, you’re likely in a strong position to sell this year.
Your current home equity can be put to work for you to accomplish big goals like affording a larger down payment on your next home. If you purchased a $350,000 home in January of this year, based on projected home price appreciation, you could potentially gain an expected $82,338 in equity over the next 5 years.
Someone who’s more familiar with the housing market of the past than that of today may think offering more for a home than the listing price is foolish. However, frequent and competitive bidding wars are creating an auction-like atmosphere.
WE ARE ALWAYS HERE TO HELP YOU
Let’s connect so you have a trusted real estate professional on your side to provide the best advice on how to make a competitive offer on a home. Home values will continue to appreciate, making this summer a fantastic time to sell your current house.