With all the challenges that our nation has faced and surpassed, you may be wondering if now is the right time to put your home up for sale. You may ask yourself, will you get the best ROI for it? With the pandemic still going on, and with the new variant of Covid-19 circulating globally, most real estate experts expect to see mortgage interest rates to remain low. With that being said, the high demands for homes will continue to increases home prices. The home prices in November last year went up by a 15% increase from the previous year.
So, should you sell your home in 2021? The answer to this question depends on three things: the mortgage interest rates, the condition of your current home, and your demand for a new home.
Mortgage interest rates
If many real estate experts’ prediction is true and the mortgage interest rates this 2021 is lower, you may want to take advantage of this and put your home up for sale. The interest rate in 2020 was below 4% and it is seen to remain low while the virus is still not contained; Realtor.com even predicted to reach 2.4% by the end of 2021. With these low mortgage interest rates, it is also expected that home prices will escalate. A low mortgage interest rate means a healthy real estate market since many homebuyers will be motivated to purchase homes.
You have a starter home
Entry-level homes are often those purchased by individuals purchasing a home for the first time. Real estate experts are likely to see the demand for starter homes to increase throughout the year, especially in areas where home prices are also increasing. The lower price point of starter homes compared to other homes is what makes it more attractive to home buyers.
Another thing that you need to consider is the number of years you have lived in the house since your purchase. If you want to be excluded in the capital gains taxes for up to $250,000 or $500,000 if you are married, then you need to live in your current home for at least two years.
Your need to move out
If you need to move out or transfer to another state or place due to work demands, you will likely need to put your current home up for sale. Sometimes, you also outgrow your home. According to a study conducted by Move.org, this is the leading reason people sell their homes. Say your career flourishes and you can afford newer, better, and bigger homes. Another perfect scenario could be that your family is growing and you need to move to a new home that can accommodate your family’s needs.