Why Should You Think About Selling Your Home This Year?

By
Real Estate Agent with Keller Williams Capital Properties DC AB15253

You may be "kicking yourself" that you didn't sell your home last year.  According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over the last twelve months. There were two reasons for this dramatic rise in values. The inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates. As CoreLogic explained:

Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus (COVID-19) outbreaks continued across the country, which delayed some sellers from putting their homes on the market.

While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record-low mortgage rates available; this is increasing buyer demand while for-sale inventory is in short supply.

Where will home values go in 2021?

Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high - fueled by record low interest rates, prices will continue to increase.

Housing Supply

According to the National Association of Realtors (NAR), the current number of single-family homes for sale nationwide is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 270,000 fewer homes for sale than there were one year ago.

However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons:

1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.

2. Some households impacted financially by the pandemic will be forced to sell.

Housing Demand

Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we're starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one  reason that demand is expected to remain high throughout 2021.

Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year.  Here are their forecasts.

What Does 2021 Have in Store for Home Values? | MyKCM

Bottom Line

There's still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of supply and demand mandates that home values in the country will continue to appreciate at least in the near future.  There are some predictions that inventory will start to grow in the second half of 2021 as the vaccine becomes more accessible and the prohibitions against foreclosures and evictions begin to lift.

If you are in the DC metro area and want to find out what the value of your home is in today's market, just give the Lise Howe Group a call at 240-401-5577.  Chances are that you will be very pleasantly surprised.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Tags:
home values in 2021
lise howe group
dc metro area market

Spam prevention
Show All Comments
Ambassador
3,541,938
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I do like your mind set and your reasoning is spot on Lise Howe 

Jan 14, 2021 07:00 PM #1
Rainmaker
3,435,161
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Lise.

For those who are on the fence, when the interest rates start to rise, they will regret it

Jan 15, 2021 12:43 AM #2
Rainmaker
3,254,553
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I don't plan to ever sell my house, but if I did, this would be a great year to sell it in!

Jan 15, 2021 05:24 AM #3
Rainmaker
3,887,669
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good mornig Lise. Now is a great time to sell and a great time to buy if you should a buyer or seller be! Enjoy your day.

Jan 15, 2021 05:48 AM #4
Rainmaker
270,913
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Lise Howe and great information for sellers to consider this year.

Jan 15, 2021 06:29 AM #5
Rainmaker
2,948,032
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I think there is all different stuff that can contribute to you wanting to sell your house and everybody’s different

Jan 15, 2021 10:07 PM #6
Rainmaker
2,948,032
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Rocky Dickerson I really think a lot of this is evergreen and I can be a pretty good thing these days

Jan 15, 2021 10:08 PM #7
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,945,714

Lise Howe

Assoc. Broker in DC, MD, VA and attorney in DC
Ask me a question
*
*
*
*

Additional Information