The latest poll from the National Association of Realtors (NAR) found that home showings are on the rise as people are adapting to virtual showings, and at the same time, 75% of REALTORS® are saying sellers are not lowering their prices. As people are social distancing, we are experiencing an inventory shortage but demand remains high, resulting in multiple offers and fewer days on the market. In Harrisonburg/Rockingham County, for example, houses are going under contract in about 17 days and selling for 98% of list price. With 30 year mortgage rates falling to ~3.33% as of last Thursday, it is a good time for home owners to sell. Although you may be tempted to stay put, refinance, and remodel, I want to share why selling may be the better option.
Lower mortgage rates not only benefit buyers, but it is a benefit to sellers too. If you are a growing family, low interest rates might allow you to purchase a bigger house or move to another neighborhood that might have been too expensive before. If you put off selling your current home, increasing mortgage rates in the future may not give you as many options.
The other reason that selling your house now is a good idea is because house values may level out or even decrease. If inventory continues to fall and Covid 19 pushes pause on the real estate market, buyer interest may fall as more and more buyers decide to postpone the home search.
The final advantage to listing now is that we do not know what the new normal will be or what buyers will do in the future. We do know what they are doing now, and that is looking for a home.
If safety is a concern, always ask your REALTOR® what your options are during the listing presentation. See my previous blog post on ways we can keep this a safe process for both buyers and sellers.