Why You Need to Sell Your House Right Now

Okay, okay – my deepest apologies for the clickbait headline, but if you’re thinking about selling your house in today’s market, what I’m about to tell you is simply that critical. 

I get it. There is a LOT going on in the world right now, and the last thing you want to hear from a real estate agent is the same old broken-record sales pitch “buy and sell with me because of ABC!”. This is not that, so I implore you to continue reading.

If you’re like me, you’re likely thinking that the last thing you want to do is move in the midst of a global pandemic. If you’re like me, you’re also probably thinking it’s easier to refinance and continue to make due where you are. Your house is big enough, in a good location, and has plenty of potential to serve you and your family’s needs for many years to come. Noted.

But some of you reading this are not like me. Your home has become a Covid Castle – and it’s busting at the seams. Your yard is unbearable. There are too few rooms to focus and organize. You can’t navigate that kitchen anymore. Your parents are moving in with you. The list – your list – goes on and on.

These reasons, like many others, are all good reasons to consider a change, but are they the best reasons to move in this market? Recently, I listened in on a podcast by a leading Real Estate educator, Tom Ferry, that contained a critical message that inspired this post (see reference in footnotes). In a nutshell, the time to sell your house is NOW, and the reasons for doing so are more economic than ergonomic. Let’s dive in.

Pre-Covid

In the years and months leading up to the Covid-19 global pandemic, the national housing market was experiencing some incredible activity in both positive and negative ways. Inventory, or homes available for sale, was fairly tight (less than 3 months’ worth in our area, even more so in other sectors). Affordability was still generally favorable, helping Millennial homebuyers who were just beginning to explore purchasing their first homes to accommodate growing families (dogs included).

It was – as Ivy Zelman and her associates phrase it – “a tale of two markets” – where in one market we had entry-level starter homes in high demand but were generally unavailable, and first-time move-up activity was relatively strong. In the “other” market, however, the second-time move-up demographic was quite dismal, causing lackluster home sales in the luxury market and condominium sales to decline. In some sectors, the luxury market experienced deflation where in others, it experienced a much slower churn.

Inventory during this time was strained because Boomers were aging-in-place and mortgage interest rates were relatively low hovering around 4.5% – 5% on average and were on the rise. Because nearly 80% of the nation’s homeowners had interest rates less than 5% at the time, and 66% had rates under 4.5%, the result was a gradual decline in move-up buyers and sellers which, over time, created a strain on inventory.

Post-Covid (Current Market)

Since the start of the pandemic, markets all over the country have experienced an increase in home prices. Some upwards of 5.5% on average. Remote workers formerly made up roughly 6-7% of the population. Now, as one could well imagine, remote working has increased exponentially – causing many homeowners to reassess their current living situation and real estate prospects. Furthermore, telecommuters who are fed-up paying high prices in the country’s cities are leaving for greener pastures (and lower prices) in other markets, causing a massive shift in mobility.

The “tale of two markets” before the pandemic has dissipated. Move-up markets are on fire, and now people are buying houses they may not have considered in the past (older homes, fewer amenities, more repair needs, less favorable lots, etc.). People are on the move again, and this time the competition is fierce. The biggest factor of all that is influencing this new market is undoubtedly the lowering of interest rates. With rated below 2.75% in some markets, buyers have more purchase power than ever before – keeping their house payments at an all-time low and giving them leverage to upgrade at a time when it is ever so critical to do so. Inventory is still low, and buyers are lining up around the corner to tour homes in markets all over the country.

So what does this all mean?

There’s a LOT to unpack here. A lot more than what I included in this post, in fact. This information can mean different things for different markets on the large scale, different people on the small scale. A lot of what is happening in the Raleigh/Triangle Area Market right now can be explained by what is being discovered in many areas throughout the country, perhaps even more so (I’m seeing even luxury and condo sales begin to take off). What this means for you, however, is going to sound like a sales pitch…but the gist here is it’s time to sell your house. Period.

If you have even *thought* about selling during this time, the answer is yes. If you are worried about what the market will do in 2021, I can tell you with some degree of certainty that eventually buyers will not have the same buying power as they do right this very moment. Also? Prices aren’t going down. They’re just not. They haven’t gone down in a long time, and they likely won’t in the near future.

What’s Next?

The time to sell is now, but the thought of it can certainly feel overwhelming. Prices are only going to increase as the months and years go by, and interest rates won’t be this low forever. The urgency is there, but the important thing to do is to weigh all your options and talk about them with someone who understands the market.

I get calls regularly from friends, colleagues, current and former clients, and acquaintances on the state of our local real estate market. If you are reading this right now, I encourage you to add yourself to my list and we’ll set up a time to talk about your options. Simply visit https://www.stevensquires.com/home-value and fill out the form to get started.

Y’all, the time is now to take advantage of what is happening in our market. To summarize, here are some key takeaways:

• We Have a Lack of Home Inventory
• Home Price Appreciation Will Only Increase
• Interest Rates Have Nowhere to Go but Up

Everyone’s situation is unique, so by no means do I think you should make a move if it doesn’t make financial sense for you and your family in this season. I do, however, encourage you to consider what it looks like to cash in on the equity you’ve built in your home at this critical time in the history of our country’s housing market.

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Steven D. Squires, Jr. is a Broker/REALTOR?, SPS? with Costello Real Estate & Investments, LLC in Raleigh, NC.

Contact Steven Squires, Realtor

Email: [email protected]

Sources:

1. Q4 Market Insights From A True Expert, Ivy Zelman – https://www.tomferry.com/podcast/experience-91/
2. U.S. Department of Housing and Urban Development – Market Analysis, Raleigh, NC – https://www.huduser.gov/portal/publications/pdf/RaleighNC-CHMA-19.pdf
3. Ivy Zelman, Zelman & Associates – https://www.zelmanassociates.com/