COVID-19 created an entire year of fear and anxiety for many. It forever changed the face of many business sectors, including real estate. As we’re now coming around the bend and seeing the light, it is important to observe how the housing market in 2021 has changed in a post-pandemic time.
Here’s our blog on how to sell your house in Seattle post pandemic:
Observing “Pent-Up Demand”
Purchase applications spiked on a year-over-year basis in late May of 2020. Many people were on the edge of their seats waiting for the quarantine regulations to be lifted. The increase in demand was driven by a shortage of homes on the market. Now, people are still uncomfortable with potential buyers visiting their home listings.
For the first time in a long time, we are seeing an imbalance between supply and demand. While people are looking to buy homes, housing inventories are still very low.
There are a few different factors pushing buyer demand, however:
- Low interest rates, perfect for those with good credit
- Tons of newly remodeled homes after people spent a year indoors thinking of ways to optimize their living situations
- Job loss and reduced income starting to subside after major job concerns
Consequences of Low Mortgage Rates
We are seeing historically low mortgage rates right now, which are starting to play into the behavior of buyers. Low mortgage rates allow buyers to take advantage of higher-priced homes, keeping prices from falling off.
There are plenty of Americans who did not lose their jobs or deal with reduced income because of the pandemic. These people want to use this opportunity to buy a new home or refinance their current home. Because keeping the economy afloat is the main priority of the Federal Reserve, interest rates may continue dropping. Those who have the ability to refinance their homes will consider doing so.
With the increase in this type of activity, lenders are implementing multiple checks, including stricter employment verifications. People who have good FICO scores will have an advantage.
The Next Stage of Mortgage Forbearance
Many people entered into mortgage forbearance agreements this past year, as many low and mid-earning industries dealt with major layoffs. Homeowners in this category experienced tons of distress over the past year.
The unemployment rate began hitting VA and FHA borrowers hard as well. However, mortgage forbearance requests are in a state of decline right now, which is a positive sign.
Should You Refinance In The Current Market?
Typically, homeowners in Seattle will refinance to cash out or lower their monthly payments. If you have a job, good credit, a conforming loan, and a mortgage rate that is 4% or higher, you may consider refinancing. Once the supply and demand imbalance reaches a stable point, refinancing may become more difficult. Those are our tips on how to sell your house in Seattle post pandemic.
Of course, if the prospect of refinancing isn’t in the cards and you are looking to completely move on from your home, you might consider selling to a cash buyer like HelloPad. We buy homes in Seattle in their current conditions, meaning you won’t have to put in any work to get a fair price for your home. Give us a call to learn more!