The COVID-19 pandemic–induced recession, followed by a global economic recovery that’s still rippling today, has placed the real estate market in a strong bullish momentum. While many consider the trend to be long drawn out, some would argue that there’s still room to grow. As a result, homeowners and investors are weighing their options between selling now or waiting it out to land that golden opportunity. This decision stems from often comparing which move would provide the most future economic benefit in the long term.
However, despite all the cards on the table, there’s no telling what else will unfold for the remainder of 2021. This is especially true when many consider that forecasts and analyses have both been blown out of the water time and time again. Here are a few things you need to learn about selling your home today with everything that’s been happening:
Despite Talks of Price Normalization, It’s Still A Seller’s Market
One key argument for selling your home now is the fear of price normalization cooling down. This seller’s market is prompting homeowners to refinance or cash out to fund their adventures and life savings. But despite both technical and fundamental analysis pointing to a market pullback or price correction, this is still an unprecedented event.
- Home Prices Are Still Pushing Higher but Not for Long: Firstly, home prices continue to surge upward and show no signs of stopping anytime soon. As a result, people might not be waiting for a price correction but instead accumulating volume for the next bullish run when global economic recovery syncs with the next housing boom. Therefore, if this prediction turns out to be accurate, then selling now might cost you the potential net profits had you waited it out longer.
- Better-Than-Expected Jobs Report to Push for Economic Rebound: Apart from general speculations surrounding home prices, global economic recovery has yet to show its full hand. The latest jobs report might be a clue for a further rebound. A slight jump for employment and adding 531,000 jobs might seem like a small win on paper. However, there’s no denying that this positive growth will also influence other aspects of the economy. And given that the markets have been craving for positive momentum, you can guarantee that this won’t be the last piece of good news we’ll be hearing for the months to come.
- Easing Restrictions Might Welcome New and Aggressive Investors: Governments are working hard to open their arms to more people and welcome fresh investors and buyers from outside. And although there’s no end to the pandemic yet, this will undoubtedly introduce new faces that are ready and willing to put capital down for the next economic boom. As a result, more resources to go around will help offset any inventory or supply constraints and retain the market’s red-hot situation as it is now.
But a Pullback Is Imminent
Likewise, a pullback is imminent despite the evidence and proof that supports the concept of holding it out and waiting for a better deal. The last thing anyone wants to happen is to miss out on the opportunity of selling entirely. Therefore, hedging everything against chance and the possibility of further bullish momentum will appear reckless considering that uncertainty and volatility continue to dominate market sentiment.
- Zillow’s Losses Could Still Echo into the Market: In most recent news, Zillow’s losses on their house-flipping business is not a small matter, and while the company of a single firm might not have a direct influence over the market, its message is loud and clear. Sure, some would associate this failure with being too greedy and trying to capture a market share too tricky to control, analyze, and predict. Still, it could also be an indicator for something else. And soon enough, Zillow’s ripple effect could skew home prices.
- No More Extra Slack from Mortgage Forbearance: Besides the fear of a market crash and the inevitable pullback on home prices, you also can’t overlook the end of mortgage forbearance. As such, various homeowners will need to catch up with their payments ASAP. As a result, those unable to negotiate better terms or couldn’t refinance with their lender will have to sell their homes in due time. Inevitably, this can and will cause a domino effect of home listings increasing by a significant amount.
Nevertheless, no two people share the same housing situation, and the stakes will vary from one household to another. So before you jump the gun on a final decision, weigh your options first and go with the choice that provides financial security.