Is now a good time to sell your house? Despite COVID-19, the signs seem to still say yes. Conditions are still favorable for selling right now, but all that could easily change later this 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 Moreno Valley.
1. Interest Rates Are Low
The fact that mortgage interest rates are low and are expected to stay that way throughout this year is a prime reason to sell a house in Moreno Valley. 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 3.875% this year, which is still low enough to encourage buyers to enter the market.”
Post-COVID-19, these projections have changed and rates are expected to go much lower than what experts were projecting pre-COVID-19. Even though many would-be buyers may be furloughed or laid-off leading to a temporary lowering of demand , the lack of supply of homes for sale in the market means that those that are on the market are still getting into contract as long as they are priced correctly based on its condition and the market.
2. New Buyers Entering Market
On a related note, new buyers continue to enter the market. Plenty of buyers typically indicates a good time to sell a house in Moreno Valley. 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 Moreno Valley house, but you should still use a good real estate agent to help you market effectively. (Find out more about this by calling (951)331-3315.)
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 Was Healthy Until COVID-19
In addition, now is a great time to sell a house in Moreno Valley because people are still wanting to purchase homes that used to have a lot of competition and with low rate environment. There are many people that are still working and have money to spend, some of which will be spent to buy a house.
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 despite COVID-19 due to lack of supply, but that could change soon – all the more reason why now is a great time to sell your Moreno Valley house.
But late 2020 and 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 was expected to slow pre-COVID-19. Now we know that Q2 2020 will see a contraction in economic activity due to the stay-at-home orders. On the other hand, 2021 is a different story: Respondents had estimated a 66% chance of a recession starting by mid-2021.”
These experts did not forsee COVID-19 and were wrong and the economy will be impacted for some time once the economy is reopened. 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 Moreno Valley, there really is no good reason to delay.
For more economic statistics, I like to listen to Steven Thomas with Reports on Housing that gives weekly updates on Facebook on Fridays at 3pm. Watch his most recent broadcasts at www.Facebook.com/SoCalSteven where he shares his thoughts and has recently shown statistics that although demand has dropped in the past month, the supply is also depressed and is maintaining a seller’s market.