Were you about to put your house on the market just before the pandemic began? Like so many other expectations people had for 2020, coronavirus surely threw a wrench into those plans.
These crazy few months have also made people rethink how they're living their lives. Maybe you're realizing that in these uncertain times you want to leave the city and move closer to your extended family so you and your kids can see them more regularly. It's at least a common thought many are having considering online home listing views have shown that there's a renewed interest in migrating to the suburbs.
No matter your reason for wanting to sell, you've probably held off because you're afraid that you won't be able to make a return on your investment. During the last economic crisis, it was a buyer's market, after all.
But this time, the circumstances are completely different. If you're thinking of selling, here's why you should do it now:
Demand is High but Supply is Low
The unemployment rate in Los Angeles right now has certainly hurt the city's economy in many ways, but it hasn't really affected the demand for housing. In fact, Redfin reported in early June that demand for housing was 25% above what it was before the pandemic.
However, the lockdown has required construction on new homes to stop for the last few months, minimizing the supply. Plus, like you, many people decided not to sell their home for the time being, also limiting the supply.
That means there's no reason to worry about not getting what your house is worth or having to leave your house on the market for months. In fact, one survey found that 42% of people who bought a home during the pandemic found themselves in a bidding war.
...But it Might Not Stay That Way Forever
The CARES Act COVID-19 stimulus bill put a halt on home foreclosures during the pandemic, which likely contributed to the current lack of supply in the housing market. However, there's nothing in the bill that prevents foreclosures once the time period of protection runs out. When that day comes, there could be an avalanche of properties entering the market, which would drive down home values for everyone.
Who knows how long it could take for the market to recover from that.
In general, there are still so many unknowns right now. California is opening back up again which means some people are getting their jobs back. Simultaneously, our COVID-19 infection rate numbers are beginning to rise. If Los Angeles County goes back into full lockdown, that would be another blow to the economy, that will end up affecting home values.
It's a scary thought that we'd all rather avoid. But right now, it's important to be a realist and plan for these possibilities.
If you were ready to sell a few months ago, don't put it off until "things go back to normal." If your plan was to sell in the next few years, it's worth reassessing that timeline by asking yourself what would happen in the event of some worst-case scenarios.
Virtual Tours Make Home Selling Safer
Another obvious fear people have when considering whether or not to sell is having people inside your home that could potentially bring the virus with them. Sure, everyone can wear a mask and cut down on the risk, but even then, people are still rightfully uneasy about the idea.
Luckily, you can eliminate this worry with virtual home tours and open houses. Keeping everything online can even allow for a wider audience of potential buyers to see your home since they can attend from anywhere in the world if they're looking to relocate.
Mortgage Rates Are at Historic Lows
Of course, if you're selling your home, there's a good chance you'll be looking to buy a new one. Though the home prices won't be lower than usual, you can get a new mortgage with historically low rates. Financial analysts at Fannie Mae predicted this month that the 2020 yearly average rate for a 30-year fixed mortgage would be 3.2%. The previous record for the lowest yearly average was 3.65% in 2016.
Now's the Time to Sell Your Los Angeles Home
Have you been wanting to sell your home and start the next chapter of your life? There's no reason to let the pandemic stop you. If you're looking to sell your home in the greater East Hollywood or surrounding areas, email us or gives us a call at (323) 412-9060.Posted by Ben Nicolas on