Why You Should or Shouldn't Sell Your Home in 2020

Dated: September 1 2020

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Why You Should or Shouldn't Sell Your Home in 2020

You may be wondering if now is a good time to sell your house, and the answer is.. Maybe.

As a result of the stay-at-home orders and rising economic uncertainty, this spring has seen a rapid drop in homebuyer activity. This in return has left home sellers a few choices: They can put their place on the market during the pandemic, wait until the stay-at-home orders are lifted or put off their plans indefinitely. However, as a homeowner, the final decision on what you’ll do should depend on the unique details of your current situation.

Here are three reasons you should sell your home in 2020, along with three reasons you may benefit from waiting:

Sell in 2020: Interest Rates Are Expected to Remain Low

Even before the first known coronavirus cases in the U.S., economists and real estate professionals predicted mortgage interest rates would remain, on average, below 4% for the majority of 2020.

The average mortgage rate hit a 50-year low on March 5th, when the average mortgage rate for a 30-year, fixed-rate mortgage was 3.29%. On April 23, it was reported that the average mortgage rate was 3.33%. Even if a rapid economic recovery takes place after the stay-at-home orders are lifted for most Americans, the expectation is that interest rates will remain low. That's good news if you’re looking to finance a home purchase or need interested buyers to be able to secure an affordable mortgage.

Sell in 2020: You Have a Starter Home

Especially if you live in a city where home prices were climbing fast and bidding wars were common in recent years, homes at entry-level prices – often purchased by first-time homebuyers – are likely to still see buyer activity through the rest of the year.

Sell in 2020: You Need to Move

If you need to move regardless of stay-at-home orders, it’s still possible to sell your home and find a new one. You certainly wouldn’t be the only one moving for a variety of reasons. But, if you’re able to wait a bit longer, listing your home once the isolation orders lift would be ideal. Buyers may not immediately rush back into the market, but as long as the economy sees positive gains, the housing market could see some rebound.

Wait to Sell: You Just Refinanced

If you’re one of the many homeowners who have refinanced recently, there’s no reason to consider selling your home in the immediate future. Hopefully, your refinanced mortgage has helped ease financial woes by lowering your monthly payments, which helps to keep you more securely in your home.

Wait to Sell: You’re Worried About Affording Your Next Purchase

Even if you’re not unemployed, you may be furloughed from your job, have taken a pay cut or have been warned about layoffs on the horizon. All of these scenarios cast uncertainty on the future of your income, and in most cases you’ll be better off delaying the sale of your house and purchase of another until you know what the future holds.

It’s also a good idea to be in contact with your lender if you’re experiencing any reduction or loss of income to discuss options for deferring mortgage payments for a short period of time or modify your loan to ensure you can remain in your home for the long term.

Wait to Sell: You’re Not Willing to Compromise on Price

If you were looking forward to selling your home in a spring seller’s market, where buyer demand is high and likely to drive prices up, you can throw that dream out the window – at least for now.

It remains unclear what the immediate future holds for individual housing markets when stay-at-home orders end. It’s possible markets will see eager buyers rush onto the market all at once, but the longer quarantines last, the more likely that homebuyers will delay their purchase longer.

If you don’t like the idea of settling for a price slightly lower than you may have gotten in a normal spring season, you’re better off remaining in your home and waiting until there’s data that provides you with new price expectations. If you’re unwilling to waver on a sale price, you may have to wait out the recession that the U.S. economy currently appears to be enduring, and there’s no telling how long it will last – and how it will affect home prices.

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Mary Gonzalez

Mary Gonzalez has a heart of gold and unbridled enthusiasm. She’s proud to be part of the HTR family. Her many years in legal services has prepared her to deliver the high quality customer service t....

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