Spaces Blog

Is 2021 the Year to Sell Your Place?

To say this real estate market is unique is… quite the understatement. It’s no secret that we are seeing unprecedented buyer demand, not just in our market, but nationally. Historically low interest rates and the extra money that folks have saved during the pandemic continue to stoke the real estate fires. COVID has changed buyer needs at least for the short term, and caused some hesitancy in the seller market as sellers had concerns about showing their homes during the pandemic. Additionally, according to NPR, lumber prices are up 300% compared to this time last year and median home sales price is up 20% nationally compared to this time last year. It’s a wacky year out there in the real estate world and everyone is wondering if 2021 is the year to sell.

All of this upheaval has created some uncertainty for sellers, especially sellers who may want or need to sell their home and buy a new home.

So what is a seller to do? Is now a good time to sell? Here’s why a sale in 2021 may make sense.

Unprecedented Buyer Demand

Not much more need to be said on this topic. There are scores of articles about how we are in a sizzling seller’s market, not just on the Front Range, but nationally. If you are considering selling your home, at least in the short term, you can expect to have multiple buyers eager to jump at the chance to purchase.

Low Interest Rates, Which Drive Demand, May Be on the Way Up.

Interest rates have already risen some. According to Freddie Mac, the rate for a 30 year fixed rate mortgage bottomed out in January of this year at 2.65%. The rate today for a 30 year fixed rate mortgage is at 2.95%.

Low interest rates have fueled buyer demand and if interest rates rise, buyer affordability, and therefore enthusiasm, could decrease. This could be the thing that slows buyer activity some- only time will tell!. According to the Freddie Mac Quarterly Forecast they say: “We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.” Thanks to Lacey Hoenshell at Elevations Credit Union for sending over those resources to us!

Have a Home with Issues? This Market May Be the Perfect One in Which to Sell.

If you own a home that may cause you some issues when you sell (for example maybe it needs some cosmetic updates or other more costly upgrades, maybe it has some road noise, or maybe it has been an investment property and it’s been a thorn in your side), now is a great time to consider selling. In this market, cosmetic issues, road noise, and other minor irritations are not going to slow a sale down. In a different market where buyers have a lot more choices, these things could be more of an issue and could lead to longer list times, a lower sales price, and more sluggish buyer demand.

Your Next Place May Be Getting More Expensive

If you would be transferring money from your real estate sale into a different piece of real estate, it’s worth noting that while your current home is gaining value, your next home is probably getting more expensive, too. We’ve heard from some home sellers who want to move that they are hesitant to make the jump because their next home is getting more expensive. While that may be true, if you are transferring money from real estate into different real estate, it is probably a wash, and it may make sense to make the move sooner rather than later to take advantage of low interest rates. If this sounds like your situation, there may be multiple moving parts that are complex. Don’t hesitate to reach out if you’d like to talk numbers.

Also, last thing, for all the home buyers out there- if you would like to be a buyer in this market and you are worried about the stories about buyer competition, don’t despair! There are ways to win in this market. Ken and I would love to fill you in and we’d love to hear from you!

Until next time!

Posted By : Allison Benham at