Over the past few months, stress, anxiety and perceived market uncertainty have put the brakes on home sales. Many homeowners preparing to list during the active spring season chose to hold off and wait. These same homeowners are wondering now what the next few months will bring and if it is safe and profitable to list in the near future. While selling your home during a pandemic may seem like an uncertain and risky proposition, now is actually a great time to sell your home in Salt Lake.
Interest Rates are Low
In April, the central bank announced it would hold interest rates between 0% and .25% for the foreseeable future. According to Kelle Smart from Academy Mortgage Corp, “Mortgage rates have again fallen to a new all-time low…There is a distinct possibility that the average 30-year fixed-rate mortgage could dip below 3 percent later this year.” Prospective buyers are highly motivated to buy now while interest rates are historically low.
Buyer Demand is High
Buyer demand is at an all-time high as buyers have put off buying a home over the last few months. Those who were planning to move before the coronavirus are ready to buy. Homeowners and renters who have been working from home and quarantining in tight quarters are now looking for more space and a more yard. As stay-at-home orders have started lifting across the country, we are seeing peak buyer interest.
Home Inventory is Low
Before the March coronavirus outbreak, Salt Lake was facing a serious housing shortage. James Wood, Ivory-Boyer Senior Fellow at the Kem C. Gardner Policy Institute, cites the number of home listings in Salt Lake since March are “down 18% from last year, exacerbating the existing inventory shortage.” Low inventory coupled with high buyer demand means that sellers have a competitive advantage and negotiating leverage.
Prices are Rising
Tight supply is keeping pressure on rising home prices. With increased buyer competition, sellers are finding themselves in multiple-offer situations and homes going for over listing. Economists estimate that adjusting for coronavirus impacts, home prices in Salt Lake will rise 5% in 2020. High-demand neighborhoods may see prices rise even higher.
Navigating a real estate transaction is alway stressful. Add the complexity of COVID-19, especially if you or someone in your household is high risk, and it can seem insurmountable. But now is the peak time to sell your home if you are considering it. As Salt Lake’s premier listing agent, we can advise you on your options and look out for your best interests. Contact us today for a no-pressure consultation and read more about our profit-maximizing listing process including all-inclusive staging.