It’s been great to be home for the last couple weeks. Lots of cycling and hiking and simply enjoying the changing weather.
There really is no place like “home,” wherever that is for you. I’ve also met up with a few friends recently (socially distanced, of course) and it reminded me how fortunate I am to have good friends and a small network of supportive folks in my life. Home really is where your peeps are.
We have been talking about preparing your home for selling over the last couple weeks both inside and out. There’s lots of reasonable things you can do to help your home get more offers and simply attract more potential buyers. But today we’re going to shift backwards a bit and talk about why that matters now.
The reality is some of you are going to have to move in the next few months. No, I don’t know something you don’t, it’s just the way of the world. Jobs change. Life throws us curveballs. Things just happen that force our hand. Let’s take a look at some of the reasons this is really a fantastic time to put your home on the market.
The first and most important reason that now is a great time to sell is that buyer demand is finally back with a bit of gusto behind it. According to the National Association of Realtors’ pending home sales shot up 44.3 percent in May — the highest month-over-month jump since 2001.
That’s a huge jump and a very encouraging number for those selling and buying. It is a great indication of the “world” opening back up a bit and buyers and sellers being more than ready to get back in the game.
We always try to remind our readers that national statistics are not directly related to what is going on here in the Granite State. But one of the many positive trends we’re seeing with this increase in activity is the regions that are most affected.
As people are now (finally) able to work more from home, employees are realizing they don’t need to live close to the office. This translates into a strong migration towards the suburbs and smaller, more remote cities.
I have bounced around this country for thousands of miles and never missed a beat in running my business. We will most certainly see a trend in this shift away from the cities as more folks jump on board and head away from the dreaded concrete jungle.
With this increase in activity and a migration towards the trees, home inventory still remains low. While this is a hassle for the real estate professionals (they’ve less homes to offer buyers) it is a great opportunity for sellers. According to NAR, inventory was 27 percent lower in June than it was last year.
There are also more government stimulus packages that are helping distressed homeowners stay afloat. This is a great opportunity to get your home on the market and likely ensure lots of interest and showings!
You don’t have to be an economist to figure out that if demand is high and inventory is low, prices are going to be stable at the very least. NAR reports that most markets saw an increase in home prices in the first quarter of 2020.
The national median single-family home increased in price by 7.7 percent to $274,600. Again, this is a national number, but we are seeing the same trends (with inventory and demand) right here. It stands to reason that we’ll see the same trend in home prices as well.
We have mentioned this before, but it bears repeating in case you’re not keeping up with this information. Interest rates are still fantastically low. Freddie Mac reported in July that average interest rates hit a new record low of 3.07 percent for 30-year fixed mortgages. That not only translates into a better monthly payment, but also means your home will cost you thousands of dollars less over the life of the loan. It is no surprise that mortgage applications have also jumped over the last few months.
Lastly, people’s needs have changed. As we noted above, more and more people are able to work from home.
“If you’re using your kitchen table as your office, you are unquestionably eager to trade your commute for an actual home office,” Badger Realty agent Deirdre Lorway said.
Many people are also realizing they simply need more space. Spend enough time locked in a home with your immediate family and I think we can all appreciate the need for more space. Home offices, more rooms, more storage, more privacy and more usable outdoor space have all risen to the top of the wants/needs list for most buyers.
Keep those items in mind as you’re considering putting your home on the market or tackling a remodeling job. The interest is there, it’s now time to add your home to the fray. Call your real estate professional today.