A large and stressful part of the selling and buying process is deciding whether or not you should buy and sell. The housing market can stress just about anyone. With lingering uncertainty from the COVID-19 pandemic, you may be in the same boat as many others. If you’re in this position, know you’re not alone. Here are a few things to think about before putting your house on the market if you haven’t thought about them already.
Low supply of homes on the market
Since the pandemic, there has been a record low number of houses on the market. Between April 2020 and April 2021, inventory dropped more than half because people were not as eager to buy and sell homes in a time of uncertainty. While the number of listings has increased, it is still a difficult time for buyers and sellers alike. May is historically the best month to sell a house; however, with the unparalleled conditions of the market, it can be even harder to buy a new place. While spring usually brings an increase in the real estate for sale, this also means that the prices will be higher since there is a lower amount of inventory.
The culmination of the low supply of homes on the market and the high prices is a highly competitive market, even more so than in previous years. This means that homes will sell faster. If you’re uncertain about being able to afford your next purchase, this may cause concern. Even before the pandemic, housing prices rose, and COVID-19 only acted as a catalyst for this process. However, if this is not an issue for you, you may be the perfect contender for selling.
Rising Mortgage Rates
Once again, the high demand with low supply is creating the perfect storm for high and rising mortgage rates. Talk of rising mortgage rates appears to increase the number of buyers on the market because people want to buy homes before mortgage rates skyrocket.
Buying, selling, or listing a home is a stressful process in and of itself, regardless of a global pandemic and its continued impact. The main vital things to consider right now are whether you are mentally prepared for the current chaotic market and whether or not you can match the rising prices. If you feel that you are ready for it, then right now is probably the right time to go for it. However, if any of these aspects are cause for concern for you, it is best to wait out the chaos of the housing market.