So far, 2021 is shaping up to be competitive for buyers looking for a new home, with prices continuing to rise and homes generally selling quickly. Of course, home sellers are eager to cash in on the hot market they see, and they’re frequently receiving above-market offers from buyers hoping to convince them to sell. Here’s why home selling on the rise in 2021 is a good thing for homeowners.
The 2021 US economic picture is looking better for home sellers, and here’s why:
- More states and local governments are scaling back or eliminating coronavirus restrictions.
- Federal stimulus checks appear to have put more money in people’s bank accounts and also given them more confidence in the economic turnaround.
- COVID-19 vaccinations are available in increasing numbers. More Americans are being vaccinated, another factor helping to improve the economy.
Many home sellers have their pick of buyer offers in 2021. In some cases, home sellers and listing real estate brokers are even reporting bidding wars. Big institutional investors looking for homes to purchase to then rent out also drive up home prices this year.
Home sellers benefit from current real estate market conditions due to a shortage of single-family homes to meet buyer demand. According to an April 17th article on the Wall Street Journal website, the nation’s housing market is 3.8 million single-family homes needed to meet current housing demand. The 2021 home shortage represents a 52% rise compared with 2018.
Buyer Confidence High
Homebuyers in 2021 are also feeling increasingly confident about the economy and their ability to buy a home. Government-sponsored entity Fannie Mae annually buys many thousands of lender-originated mortgage loans on the secondary mortgage markets. Current Fannie market reports say that lower home mortgage interest rates are also helping create even more buying intensity than in years past.
Time to Sell?
The year 2021 shapes up to be an excellent year to sell your single-family home if you own one. Market values for homes have been increasing throughout the year, and they show no signs of slowing down, either. If you’re a homeowner thinking of selling, 2021 might be the right time to do so.