To say that this has been a crazy year is putting it lightly! The pandemic, riots, and a confused economic system (do I need to mention Murder hornets?) make for some very uncertain times. It’s only natural that you might be hesitant to sell your home these days. But maybe you should strongly consider it. This might in fact be the BEST time to sell if you were already considering it. Let’s look into it a little deeper and see why 2020 might be your year to sell your house in Middle Tennessee.
Inventory Shortages
Middle Tennessee has been building and building but even before the pandemic we still had inventory shortages. When the pandemic hit many sellers took their homes off the market reducing the inventory even further. Builders slowed down a little during the pandemic too as fears of the damage to the economy ramped up. That left us with fewer homes to sell and a much higher level of buyers, even with so many buyers in “lockdown.”
Home Buyer and Home Seller Balance
There has been a shift in the number of buyers searching for homes. The amount of buyers is fewer overall but not enough to balance the severe home shortages. The available homes for sale is LESS than the number of buyers out there looking. It’s a supply and demand problem and right now we have more demand than we have a supply of homes. As a result popular homes are selling in just a few days with multiple offers. Not every home fits this description but if you have an updated home, with some yard space, and in a good area close to jobs your home is very marketable.
New Buyers Hitting the Market
There is also a flush of new buyers hitting the housing market for the first time. Where are these buyers coming from? Rentals.
People trapped in apartments during the pandemic learned to see the value of having their own home with some yard space. The interest rates are also crazy low which makes a home more affordable even if the property values are increasing.
It’s also about control of your finances. Once you lock in your home price it will not change! Your taxes can changes and your insurance can change but the mortgage you agree to will stay the same until you pay it off or sell it! This gives a homeowner more stability than someone living in a rental where the landlord can raise their rent.
The Middle Tennessee Real Estate market has been very attractive in the last several years to people in tax burdened states like Illinois, New York, and California. Today those same buyers are even more interested. Lock down conditions in those areas are highlighting the benefits of a more rural lifestyle with the freedoms that it enables.
What are Home Buyers Looking for Now in Middle TN?
Space in the “in thing” for homes in 2020. Home buyers are looking for room to walk outdoors and get in the sunshine. A backyard with a little space to play, a neighborhood you can walk in for exercise and stress relief, and even larger properties with the potential for homesteading are ALL highly desired right now. Starter homes are in high demand for the first time buyers. The homesteading properties are in high demand for those who have become concerned with food security and would like a little room between themselves and their neighbors.
The ideal property people are looking for is a nice home on an acre or more. I recently put a listing under contract in less than a week. The first weekend saw a ton of showings and even more people came to the open house. 306 Chestnut Terrace fit the ideal home for many people: a good layout, lots of interior space, and a good outdoor space with a 1.5 acre lot.
How to Make a Home Sell Fast in 2020
With 306 Chestnut Terrace I adapted to the changing times. I premarketed the listing before it was available with a preview video on YouTube. Then before the listing was active I did a video tour and sent it through our database, used Facebook marketing, and shared the post in local groups. Video tours are absolutely essential for any listing going forward. That is a standard practice for every listing I do.
How Long Will This Sellers Market Last?
No one can say for sure how long this will continue. It depends on a number of significant factors.
Will the jobs lost due to the pandemic come back? If they do then the housing market should continue to stay strong.
What happens if the jobs do not come back? Will we see foreclosures? Very possibly.
The government stimulus bill gave homeowners the ability to take advantage of mortgage forbearance which delays their need to pay their mortgages for a time. That can’t last forever and in some cases banks may require that the balance be paid back all at once. That could force foreclosures but I would suspect most banks would want to readjust the terms rather than go through the expense of the foreclosure process. However if the homeowner was having trouble paying the mortgage before the crisis banks may take a long hard look at that foreclosure process.
Even then I could see some people who could not find work due to lost jobs not be able to resume payments and foreclosures could loom on the horizon within a year. There’s no crystal ball to predict the future of the economy.
All these factors combine to make it a good time to sell a home. Every situation is different and if you would like to talk through your home sale and IF it is the right time to sell for you give me a call. 931-808-6808 (Dave)