If You've Been on the Fence About Listing Your Home, Now Might Be Your Best Chance to Capitalize on a Frenzied Market.
In April and May of this year, there was considerable concern for the luxury real estate market. A growing pandemic, stay-at-home orders, and plenty of economic uncertainty made plenty of real estate professionals nervous.
Fast forward to now, just a few weeks before the calendar flips to 2021, and a lot has changed. A vaccine is on the way, life is slowly returning to normal, and the real estate market is blazing hot.
If uncertainty early in the year kept you from selling your home, the market turnaround might prove reason enough to reconsider. Let's explore four reasons why now is the best time to sell your home.
Buyer Demand is Extremely High
Recall that in the direst months of April and May, when the entire country shut down, so did the buying and selling of homes. Limited listings, no showings, and few transactions, all at the height of what is typically the industry's busy season.
However, since late July and early August, buyers have been making up for lost time. Fueled by a rethinking of lifestyles and a greater need for space, suburban homes across the country have been in high demand. Homes with dedicated rooms for office or study or flexibility with multi-use rooms or plenty of outdoor space are the most popular.
Should that description match the home you're considering selling, expect plenty of offers above your asking price.
Limited Home Inventory
If you remain unconvinced, don't worry. You're not alone. While homebuyers are rushing to make up for time spent sitting on the sidelines, potential sellers are reacting oppositely. New listings are down considerably from where they were a year ago, and in some areas, they’re way down.
Listed homes garner massive amounts of interest. Competing offers are not uncommon, and anecdotes include homebuyers setting up multiple showings on Monday, only for the homes to be gone by Tuesday. If your house sits in a highly desirable neighborhood with few other listings in the area, expect to become the most popular home on the block.
Prices Are Up, Interest Rates Are Down
High demand and low inventory create an excellent atmosphere for sellers to generate the most money from their sale. It's a perfect combination for those ready to move on from their current residential situation.
Also driving demand are historically low interest rates, which are currently sitting at less than 3% for a 30-year fixed rate. Due to this dynamic, buyers among all segments are balking less at the rising prices. For sellers who still want to mull over a potential listing, it's worth taking advantage of the low rates yourself and considering refinancing in the short term.
Sell on Your Terms
Finally, current market conditions provide sellers more control over the process. Gone are the days of the last minute, drop-in tours. Now virtual tours and limited in-person interaction help ensure that only the most serious buyers physically tour your home.
Ready to learn more about the Los Angeles luxury real estate market? Whether you're buying or selling, allow Spencer Zorn to be your guide to the best of Beverly Hills, Malibu, and West Hollywood.