Home values are on the rise and are projected to continue on that path! It’s a great time to sell and take advantage of your home equity.
As we approach the end of 2020 and work to figure out the challenges that we have seen this year, you may wonder how economic uncertainty may possibly affect home values. The basic principle of supply and demand can provide us with an indication of what is to come.
With a shortgage of homes for sale, home prices have trended up. When you think about how supply and demand works, when there is a high demand for something but a low supply for it, in general people are willing to pay more for that item. This is exactly what is happening in the current real estate market. The low supply of homes for sale on the market has been creating bidding wars, which also help to drive up the sales price of a home.
There’s no indication that buyer demand will decrease, so the prices of homes are expected to continue to rise over the next year.
Won’t there likely be many foreclosures coming to the market soon?
Some are worried that homeowners who took advantage of a mortgage forbearance plan might end up in foreclosure once the program is over. When you really study the information about those in assistance programs, the risk of them entering foreclosure at the conclusion of the program is actually relatively low.
Home Values Predictions
When the pandemic hit our country, many people feared that home values would decrease and the housing market would take a large hit. Actually, home prices have increased substantially. In the next year, we will likely see home values increase even more due to the continued low supply of homes on the market. If you are thinking about selling your home within the next 12 months, now is the time to think about moving forward with that plan. You should definitely consider taking advantage of this great seller’s market that we are currently in. If you have any questions regarding the listing process, the value of your home, or anything else, let’s talk.