To say the year 2020 is an unusual one is an understatement. But unlike many housing analysts predicted, the housing market remains strong, and experts now believe a crash is highly unlikely.
There are many reasons for sellers to toss their hats into the home-selling ring in 2020, and you can use them to your advantage.
When you come across a potential lead who is on the fence about selling in the current climate, lean on market data and trends to show them why right now is actually a great time to do it.
1. Home prices are on the rise.
Fueled by low inventory and increasing buyer demand, home prices have slowly increased over the last few months. That trend is expected to continue.
National Association of Realtors Chief Economist Lawrence Yun believes home prices will climb to 4% growth overall in 2020.
This means it’s a great time for sellers to capitalize on the equity they’ve built in their homes. But because many buyers might be priced out of the market if prices continue to climb, it’s important for sellers to make their homes stand out from the competition and rely on high-quality photos and virtual tours to pre-sell people on their homes.
Most sellers will also be able to hold out for higher price offers if they aren’t thrilled with the initial offers they’re receiving.
2. Interest rates are at historic lows.
Last week, average U.S. mortgage rates for a 30-year fixed mortgage fell to an all-time low of 2.88%, according to Freddie Mac.
Of course, these low rates are a major draw for potential buyers looking to find their next (or first) homes, but these low interest rates also spell good news for home sellers. As interest rates continue to fall, more and more buyers will enter the market, resulting in increased home demand and higher sale prices.
3. Inventory remains low.
While low inventory means more competition for buyers, it also means sellers gain the upper hand in most transactions. Homeowners who choose to sell can benefit from this increased competition.
For the third consecutive month, Redfin reported that more than half of its homes had multiple offers.
The data found that 56% of single-family homes had multiple offers, followed by 54% of townhomes and 42% of condos.
This increased competition for houses means higher prices and potential bidding wars.
4. Home equity is unlikely to drop.
With most housing markets at low risk for a downturn, the 2020 Housing and Mortgage Market Review estimates home prices will continue to rise for the next couple of years.
That means homeowners just starting to think about selling will likely benefit from increased prices for the foreseeable future.
You can persuade potential leads to enter the market by offering them a free home value estimate.
5. Virtual showing tools mean less people physically walking through homes.
By now, real estate agents have perfected the art of showing homes during the pandemic. In addition to thoroughly sanitizing their properties and mandating mask wearing during showings, real estate agents have increasingly been using video tours and virtual tools like Matterport to give buyers a more realistic picture of the homes they list online.
These tools act as a weeding out tool so that the buyers who do schedule in-person showings are likely more serious and pre-sold on buying the homes they tour.
Even the most anxious homeowners can be convinced that now is a great time to sell if you take the proper precautions and put together a strategic virtual marketing plan to sell their homes with the least amount of foot traffic.