waiting to sell can cost you
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By Melissa Rolland | Published December 3, 2020
Our local market in Connecticut typically cools with the weather at this time of year, but as with so many other things in 2020, we are seeing atypical conditions in the world of real estate.
Low mortgage rates and anticipation for a COVID-19 vaccine soon available support high hopes for a continued strong market into 2021.
While it might seem tempting to hold off on selling, with anticipation that conditions will continue to be strong for sellers down the road, there are two reasons to reconsider and strike while the proverbial iron is hot and list sooner rather than later.
A review of the most recent market statistics, according to the Greater Hartford Association of Realtors released on Nov. 24, shows “closed sales of single-family homes in Greater Hartford increased 36.31 percent (from 548 to 747) over October of last year. The median sales price increased 13.33 percent (from $247,500 to $280,500) and pending sales rose 49.90 percent (from 509 to 763). New listings increased 4.66 percent (from 772 to 808) and inventory dropped 35.56 percent (from 2610 to 1682), during this same time frame. In year-to-date statistics, year over year, new listings decreased 9.67 percent (from 8642 to 7806). Pending sales increased 12.52 percent (from 5608 to 6310) and closed sales increased 7.89 percent (from 5580 to 6020). The median sales price increased 9.76 percent (from $246,000 to $270,000) and the average days spent on market decreased 10.53 percent (from 57 to 51 days), during this same year to date, year over year, time frame.”
[Real Estate] The pros and cons of selling on your own »
An advantage of listing in the current market is that we are dealing with a known set of circumstances. We know where the market is, what interest rates are, what demand is like. The truth is that interest rates do fluctuate, and no one can predict where they will be in the future.
When they do go up again - because at historic lows there is one way that they will probably go - many buyers get pushed out of the market, meaning that your chances of finding a buyer willing to pay your price decreases.
Another advantage of listing and selling now is that in the future, your property could cost you less now than if you wait. If you’re looking to buy a more expensive property after selling your current one, the likelihood is that your new property will also be appreciating in price at the same rate as your current home.
The saying goes that a “rising tide lifts all boats.” If your property will sell for more in the future, so will the new house that you’re looking to buy and anything you gain may actually not make up the difference in your new purchase.
If you’re thinking of selling, the market that you can predict is the current one. If you wait to sell, hoping that the market will get “even better,” it can end up costing you.