Is now a good time to sell your house? All the signs seem to say yes, and most of the real estate gurus agree. Conditions are favorable for selling right now, but all that could easily change by next year. A couple of the most important indicators that now may be the time to sell is the fact that “homebuyers are less likely to face affordability issues, and that there will be a better balance between supply and demand for housing than in previous years,” according to one expert. But there’s more, much more. So let’s take a look at more of the reasons why now is a great time to sell a house in Metro Detroit Michigan.
1. Interest Rates Still Low
The fact that mortgage interest rates are still low and are expected to stay that way throughout this year is a prime reason to sell a house in Metro Detroit Michigan. It’s an incentive for on-the-fence buyers to go ahead and decide to buy.
Consider that the Federal Reserve left interest rates unchanged in December 2019 . . . and noted its intention to keep rates as-is throughout 2020″ –good news indeed for both buyers and sellers. “On Jan. 2 the average interest rate for a 30-year fixed-rate mortgage was 3.72%,” and “mortgage rates will stabilize at 3.8$ this year, which is still low enough to encourage buyers to enter the market.”
The upshot is that people can still afford to buy homes when interest rates are low. And those who delayed before may go ahead and buy now.
2. New Buyers Entering Market
On a related note, and in part for the reason stated just above, new buyers continue to enter the market. Plenty of buyers typically indicates a good time to sell a house in Metro Detroit Michigan. But here are some things you should keep in mind about the market and these new buyers:
- They are less interested in higher-end homes and more interested in mid-level and entry-level homes.
- Most of the new buyers are and will be millennials, who are mostly first-time buyers.
- Younger Generations Z buyers are now also beginning to enter the market.
These facts about the new buyers show that targeted marketing will be a crucial ingredient in sales. Now may be a great time to sell a Metro Detroit Michigan house, but you should still use a good real estate agent to help you market effectively. (Find out more about this by calling 248-330-4421.)
3. Inventory Still Low
Although the situation isn’t as bad as it was not long ago, there still aren’t enough homes to go around. And when home inventory is tight and demand is high, that’s a perfect recipe for a bidding war, which is the perfect situation for sellers. Low inventory also typically means quite a few cash buyers on the prowl.
Although inventory is improving, “there’s still a shortage of houses for sale (less than a 6-month supply found in a more normal market), so homes are going under contract quickly.” In fact, according to a National Association of Realtors survey, “new homes are staying on the market for an average of 27 days.” That’s not very long at all and very good news for sellers.
Bear in mind, though, that this low-inventory situation is expected to improve late in the year. And that means, of course, that now is the time to sell.
4. Economy Healthy and People Working
In addition, now is a great time to sell a house in Metro Detroit Michigan because the economy is pretty healthy. Unemployment rates are near a record low, and incomes are increasing. People are working and have more money to spend, some of which will be spent to buy a house. Add to that strong consumer confidence, and you can see why now is your time to sell.
5. 2021 Not Predictable
Contrary to what many economists and financial gurus would like you to believe, they really don’t have a crystal ball. No one can accurately predict what the future holds. Real estate market conditions are favorable for sellers right now, but that could change soon – all the more reason why now is a great time to sell your Metro Detroit Michigan house.
But 2021 isn’t looking as rosy as this year, and maybe we should heed the warnings. A National Association for Business Economics survey found that “for December 2019, none of the 53 professional forecasters surveyed expect a recession in 2020, though GDP growth is expected to slow. On the other hand, 2021 is a different story: Respondents estimate a 66% chance of a recession starting by mid-2021.”
These experts may be wrong and the economy will keep chugging along. But then again, they may be right, and if you wait till next year, you may have missed your best opportunity to sell your house. So why wait? Considering these reasons why now is a great time to sell a house in Metro Detroit Michigan, there really is no good reason to delay.