We can all agree that this summer is unlike any other we’ve experienced – we’re in the middle of a pandemic (with Arizona being hit particularly hard) and there’s no end in sight… but now is actually the best time to sell your home. A handful of economists and other experts are saying that based on current housing market conditions, everything people know about putting a house on the market is flipped upside-down. Summer is peak buying season under normal conditions, but here’s what you need to know about the unique situation we’re all in for 2020.
Why This Summer is the Perfect Time to Sell Your Home in Scottsdale
Chief economist at Realtor.com Danielle Hale says, “Given the pandemic and uncertainty it's caused, the general sentiment [among some owners] is that now is not a good time to sell your home. Yet so far, the data suggest the opposite—that buyers outnumber sellers in the housing market, which means it's better to be a seller than a buyer.”
That means if you figured you should wait until the pandemic passes – or that you may just hang on to your home for good – you might want to re-think that plan. Here’s why:
- Demand is up and inventory is down
- Home prices are up
- Mortgage interest rates are low, so it’s a win for buyers
- Buyers’ needs have changed
Here’s a closer look at each.
Reason #1 to Sell Your Home in Scottsdale: Demand is Up and Inventory is Down
The real estate market is showing strong signs of a rebound according to the National Association of REALTORS® Pending Home Sales Index. After two months of steady declines, home sales skyrocketed 44.3 percent in May 2020. That’s the highest leap since 2001, when the organization began tracking the index. And inventory is down, which means fewer people are selling their homes right now; that’s a win for sellers, because if you’re the only game in town, you don’t have the competition you would during an ordinary summer. Inventory has been down for quite some time, but not like this.
Reason #2 to Sell Your Home in Scottsdale: Home Prices Are Up
Real estate is a supply and demand industry, which means when inventory is down and demand is high, home prices go up. A lot of sellers are uniquely positioned to get top dollar for their homes right now. In fact, according to the National Association of REALTORS, single-family home prices increased in most markets during the first quarter of this year. The national median single-family home price went up by 7.7 percent, bringing it to $274,600.
Reason #3 to Sell Your Home in Scottsdale: Mortgage Interest Rates Are Low
Low mortgage rates are a big win for buyers, who can save thousands of dollars over the life of a loan by shaving off just a few percentage points. Freddie Mac’s July report says that average interest rates reached a new record low of 3.07 percent for a 30-year fixed-rate mortgage. That means buyers can buy a home now – despite the increase in average pricing – for less than they would if they had purchased before the pandemic (or even after we’re clear of the pandemic, for that matter).
Reason #4 to Sell Your Home in Scottsdale: Buyers’ Needs Have Changed
When you’re stuck in your home for months on end, you start to see it differently. People are working remotely and staying in rather than going out dining, shopping and seeking entertainment – and that means they’re starting to see that their homes aren’t as comfortable or as spacious as they thought. That means buyers are out looking for a proverbial fresh air, and many are looking to trade up. That can be a big win for you, especially if you have what buyers really want: a home office, more privacy, an outdoor living space and ample room around the house.
