Due to historically low mortgage rates, buyer demand soared last year. Home prices increased as a result of the low mortgage rates and fewer residences on the market. Simply told, the second half of 2020 was a seller's market. Will it be the same in 2021? Continue reading if you're unsure whether it's a good time to sell your home.
The following are the reasons why you should or should not sell your home in 2021:
Should sell your house: Interest Rates Are Low
For potential purchasers, low-interest rates are ideal. They reduce the cost of monthly mortgage payments! You may wonder why this is beneficial to sellers. Despite the fact that interest rates are likely to remain stable in 2021, there will still be a scarcity of homes on the market. This means that housing prices will climb, and sellers will make a tidy profit.
Shouldn’t Sell Your House: You Refinanced Or You’re In Forbearance
The refinance market exploded last year. Homeowners took advantage of falling interest rates by refinancing their mortgages at reduced rates. If you just refinanced your home, you're probably in a better position to afford your current mortgage than if you bought something new
Approximately 2.8 million homeowners are under forbearance arrangements, according to the Mortgage Bankers Association. If you're one among them and wondering if you can sell your home, we've got some excellent news for you.
Yes, you can in most circumstances! However, the money you haven't paid will be added to the total amount you owe (which includes any interest you owe). If your forbearance period is coming to an end and you're still having trouble, talk to your lender about extending it.
Should Sell: You Live In A Hot Area
According to Zillow, property prices in the United States have doubled in the last decade. Some cities, in particular, have seen large increases in property prices in recent months.
It can be a good time to sell your home if you reside in a region where home prices are increasing.
Shouldn’t Sell: Your Income Isn’t Stable
The economy is improving, but it does not mean that everyone is back on track. If you're waiting to return to work after being furloughed, or if you're concerned that your employer will lay off employees, you might believe now is a good time to sell your home and buy something cheaper.
Keep in mind, however, that purchasing a new home costs a lot of money (regardless of the property type). You'll have to pay closing expenses, property taxes, insurance, and other fees in addition to the down payment. The costs quickly mount up. And if your income isn't stable, you can find it difficult to make ends meet.
Instead of selling your home, speak with your lender about refinancing or entering a forbearance plan to assist you get out of debt.