All over the nation, the real estate market has seen some of its highest peaks of all time over the last year and a half. Many homebuyer hopefuls report that not only are prices higher than they’ve ever been, but there aren’t many houses to choose from (and that when a house does come on the market, it’s often snatched up within 24 hours!).
Are you thinking about putting your home up for sale and taking advantage of the current demand? Consider these questions carefully as you weigh your pros and cons:
YOU SHOULD SELL
Is it a seller’s market in your area?
The answer to this question is likely yes, if you live in the United States. Across the nation, the current real estate market is wildly competitive. If that’s true for your town, you may be able to enjoy a smooth selling process with a higher asking price and more beneficial terms than you’d otherwise get away with.
Should you leverage low interest rates?
The year 2020 saw dramatically low interest rates, and lots of people made the most of them. Although mortgage interest rates have risen slightly in 2021, they are still low compared to historical averages. Locking in a low interest rate now could mean decades of comparatively low monthly payments.
Is it about that time anyway?
Maybe your family is expanding, you’ve been thinking about moving further away from the city, or you have maxed out your starter home. The pandemic changed the workforce in more ways than one, and many more people now work from home. If that’s your case, you might be looking for something with a defined office space. Whatever your reason, if you’ve already been toying with the idea of selling your home, now may be the time to make your move (so to speak!).
YOU SHOULD STAY
Will you be able to find a new home?
The great news is that you could turn a tidy profit if you sell; the not-so-great news is that you aren’t the only one trying. Finding a home in your area that’s comparable (or upgraded!) from your current one means you will likely be buying a house that is also being sold by owners who are trying to squeeze the most out of these turbulent times — AKA, the home may be overpriced. Or, in many cases, there simply aren’t any options to choose from at all. In this market, now’s not the time to sell and just “hope for the best.”
Will you find a new home that you can *actually* afford?
As mentioned above, low rates are promising and can make a big difference in your monthly home expenses. That said, the low supply of available properties compared to the number of people wanting to buy has driven prices skyward. In this classic economic example of supply and demand, the asking price may balance out the low interest rate and make a new home a bad fit for you at this time.
Did you just refinance?
Perhaps you already made your move on the historically low interest rates and chose to refinance your home. If that’s the case, you’d probably be smart to hold off on selling your home at the moment. If you haven’t already, refinancing may be an even better financial solution compared to selling (and you don’t have to pack — win-win!). This is especially true if you aren’t seeing homes in your desired location that you can afford.
If you’re truly on the fence and can’t make a decision, it’s probably better to stay put for a while longer. Waiting for a more balanced market doesn’t have to be a total standstill, though. Consider making a few improvements to your existing home in the meantime. If you stay — great! You get to enjoy an upgraded space. If you sell — awesome, you can factor in your renovations and home improvements into your list price.Does part of your home improvement to-do list include new doors? Take a look through our collection of interior and exterior doors now to find the perfect fit.