As 2020 progressed and the pandemic took its toll on all sectors of the economy, analysts paid close attention, and while the housing market performed very well overall, the trend did not hold. All eyes are now on what lies ahead in the coming new year, and many homeowners need to know their options. The real estate market forecast points to slow growth in house prices ahead. Several factors at play will influence the market, and while some of them may fluctuate slightly from the estimates, the data is worth considering when making your plans for the future. You will definitely want to note what homeowners need to know about selling their house in Greenville in 2021.
Many families that would typically have stepped up in house size and amenities have held back due to economic factors. Additionally, quite a few have entered a wait-and-see pattern, reluctant to make a move during the global pandemic. Inventory is currently low, causing demand for homes; however, forecasts indicate this trend will reverse in the coming months. Homeowners need to know the growing number of listings coming to the market, which they will compete with when they sell their homes in Greenville in 2021. As it is unlikely that a high number of those who fall under the mortgage forbearance act guidelines will be able to begin making timely payments, experts expect houses to flood the market. Very few can afford the luxury of time to afford to keep an ad indefinitely. Additionally, for many, the financial means are not within the budget, should a relocation or other life-changing event be forcing a move before the sale.
Prices May Drop
In addition to the increase in supply, which will cause property prices to flatten at best, the expected growth in arrears may put downward pressure on property prices that homeowners need to know about selling their Greenville homes in 2021. Covid19 cases have affected employment rates, affecting house prices, which could mark the first drop in nine years. Many sellers may tend to stick to pre-covid prices, which results in their homes staying in the market longer, which also results in an overall lower selling price. When determining the real value of the property, consider annual taxes and the initial investment, as well as monthly costs and maintenance costs, and the cost of listing and selling a home. If there is a move in your future, it may be wise not to delay.
Mortgage Rates May Rise
Also, Homeowners need to know that economists are predicting an increase in mortgage rates when selling their houses in Greenville in 2021. The Fed, or the Federal Reserve, is the single largest buyer of mortgage-backed securities. The Fed is likely to keep rates low in the short term; however, this is probably not true for some longer-term Treasuries or mortgages. While they are not directly involved in setting current mortgage rates, their policies indirectly affect these rates. Their mortgage purchases have slowed down as the year ends; the amount they buy at the start of the new year will depend on the covid vaccine and its effectiveness in normalizing the economy. In addition to the Fed, new bank capital requirements coming into effect in 2021 will likely see rates rise as well.
There is no time like the present. As delinquencies rise, homeowners need to know that the value of their property will change very little towards the positive over the coming year if they are thinking about selling their Greenville homes in 2021. Moving forward with a sale now will mean little to no equity loss compared to holding the property for another year. Should the prediction of dropping property values and rising mortgage rates come to fruition, you could actually see a loss of equity by holding onto your property past the end of the year. Additionally, with mortgage rates expected to climb, there will be yet another influence pushing buyers to make lower offers as the year progresses. Some homeowners may become financially upside down in their property, having more money invested than they will ever see come back through a sale without the real estate peak market.
Planning on selling your Greenville home in 2021? Be ahead of the curve by selling now to Pitt Home Buyers! Homeowners need to know prices will likely drop and the market likely flooded with distressed properties. With extremely quick closing timelines, we make the process easy and much less stressful overall. We welcome you to call Pitt Home Buyers today at (252) 618-0963 to save yourself frustration, time, and most importantly money. Learn more about what we can offer by reaching out to our team today at (252) 618-0963!