Let’s be real: Deciding when to sell your house is never easy—especially in a stranger-than-fiction year like 2020. But if you’re one of those homeowners who’s debating when to put that “For Sale” sign in your front yard, there are 3 compelling reasons why selling NOW makes the most sense. Let’s quickly look at them.
A Rocking Seller’s Market
Powerful, unprecedented factors have turned 2020 into one of history’s all-time best seller’s markets for real estate. As the pandemic suddenly upended our world in February and March, many sellers decided to play a “waiting game,” which rapidly led to severely diminished housing inventory in Maine (and elsewhere). This means that—for the past 6 months or so—demand for houses has greatly exceeded supply, and, therefore, that the market is now disproportionately filled with highly motivated buyers. But remember: This situation will not last indefinitely, and once seller confidence amps-up again, housing inventory will rise and put critical leverage back into buyers’ courts.
Low Inventory Powers-Up Home Prices
Despite the crazy situation we’ve all been living through, certain things have not changed, and one of them is The Law of Supply and Demand. Sure enough, as housing inventory in Maine has plummeted, the price you can get for your house has reactively risen, with the median sales price for a home in Maine now at a record-high $254,900, up a full 11 percent from just one year earlier. According to data recently released by Maine Listings, a subsidiary of the Maine Association of Realtors, just last month the number of homes sold in the Pine Tree State grew by 12.4 percent compared to one year earlier. A healthy percentage of these sales were driven by out-of-state buyers, with sales to folks from “away” jumping by 5.5 percent. A key triggering factor for this sales escalation has also, of course, been today’s extremely attractive lending/mortgage rates, which remain near historic lows.
Housing-Needs Anxiety Also Drives Buying
Another crucial—and often overlooked—factor generating the present seller’s market is the anxiety people feel over what the world will “look like” throughout the fall and winter of 2020-2021. People ask themselves, “Will I lose my job?” or “Will my business survive?” or even “Should I move to a state [like Maine] where the pandemic has been more successfully handled than in my state?” This stress and anxiety is fueling the desire for people to buy NOW—while they’re more confident they will qualify for a mortgage—so they can secure a nice home for themselves before the long-predicted “second wave” of the pandemic strikes this fall or winter. This offers you another excellent opportunity to sell your house to people highly motivated to buy.