I think we can all agree that it wasn’t that difficult to say goodbye to 2020. In an unprecedented year, we have all had challenges, whether it was sick loved ones, or just muddling through our “new normal”. And although some of the hurdles have come from business woes due to shutdowns, it would appear that the real estate market not only persevered through the storm, but it came out with gusto. As we head into 2021, there doesn’t seem to be an end, at least for now, to our red hot market. But what are forecasters saying for the New Year ahead? Is it time to list, or time to stay put?
Mortgage Rates Forecasted to Stay Historically Low
Although there is always uncertainty when a new Administration takes over, forecasters say that mortgage rates are most likely going to remain historically low. A thirty-year mortgage is currently still under 3%, which is the lowest it has been since well before the 1970s. If the mortgage rates stay put as forecasted, then it is likely that the real estate market will remain robust. And also, that it will encourage people to buy over renting. New homeowners are likely to make this year the one that they decide to take the plunge to ownership. So listing your home right now is an incredible win-win situation. Not only will you be able to buy something else with a lower interest rate, homes are going as quickly as they are listing!
Home Sales Will Continue to Rise
The only back draw that we are seeing in the Charleston area is a shortage of inventory. I can tell you as a realtor with decades of experience that I have never seen houses go so quickly, and for asking price or above, the way that they are. As we enter into the New Year, home prices are at an all-time high and don’t appear to be coming down anytime soon. That makes it likely that it will continue to be a seller’s market. So if you are considering listing your home, now is the time. With not much to choose from and many people vying for the same price point, you can’t lose by listing. But since it is a buyer’s market, you might want to start looking immediately upon listing, or maybe even before, so you aren’t left without options.
People are Vacating Big Cities
The number of people vacating Northern Cities like New York and Chicago and opting to move South is unprecedented, which is only further contributing to a lack of inventory. In the Summerville area alone, home inventory is 50% less this time of year than it was at the same time last year. As more people move to the area, housing will probably become even harder to acquire. That will likely push the new housing market higher. People tired of quarantining and isolation, along with the high taxes, are making Charleston one of the hottest markets in the nation right now. Again, if you are going to list your home, it appears that you almost can’t lose, at least in the first half, of 2021.
People Are Spending More Time at Home
Perhaps the biggest reason that people are opting to move to a new home is that the pandemic has made us all spend a whole lot more time at home. And if we are going to be isolated and not as social as we once were, people are looking to enjoy their time. Our budgets have also shrunk because we aren’t spending money on entertainment, so that overflow is giving some wiggle room in people’s monthly budgets. More homebuyers are realizing that home is where the heart is, and now, it is also where the entertainment is at. So, they are either hiring contractors to renovate and remodel, or trading up. Without any end in sight, or due to the changing perceptions about being social, it is likely to carry into the new year, if not forever.
As we embark on a New Year, hopefully, it will come with some relief and a return to social life. But for many, perceptions have forever changed about what is important and what is not. Changing social ideation, the desire to move out of big cities, and with historically low-interest rates that are not forecasted to change anytime soon, indicates that the South Carolina housing market will continue to churn. If you are considering listing your home, there has never been a better time to do so. Just make sure that you are in the market to buy as well, as inventory doesn’t seem to be getting more abundant anytime soon. Contact Sea Turtle Properties today and let us do a market analysis on listing your home – you might be very pleasantly surprised!