Thinking of Selling Your Home? This is the Best Time!

Let me just make one thing clear, I am not saying every homeowner in the city of Houston should drop what they are doing and go sell their home. However, if you are considering selling your home in the next 12-18 months, I believe right now is the best time!

In the last couple of months, we have witnessed COVD-19 disrupt our entire economy from companies being wiped out, unemployment numbers hitting record highs, and a complete disruption of our supply chain as we know it.

So, what about real estate?

Based on the last two decades, every major crisis that has come to Houston (e.g., 2008 stock crash, 2015 oil crash, Hurricane Harvey) has taken about 18 months to show up in the real estate market materially.

Naturally, the questions have begun to flood in; people are grasping for any Houston real estate market forecast to plan their next move. Houston home sales have already seen a decline as the total number of listings in the past couple months have decreased due to fear of the virus. Now that the city is back open and people are slowly getting back to their normal lives, this might be the best time to capitalize on the sale of your home.  

Why you need to consider selling?  

Supply and Demand

Currently homes are still selling at market prices, with some homes even getting multiple offers higher than the listing price. This is because demand for housing in Houston has seen an upward trend. Additionally, with interest rates being so low we are seeing an increase of first-time home buyers entering the market.

However, since the lock-down began many homeowners are now unemployed and are forbearing their home mortgages. When homeowners are not able to make their payments once the forbearance period is over, we will see a massive increase in the supply of homes that will hit the market next year. When all these homes hit the market, it will naturally cause the prices of homes to drop and thus making the process of selling your home even more difficult.    

Economic Indicators

So, we basically have an economy where consumer spending is at an all-time low, unemployment is at an all-time high, and people are in a constant state of fear as new record cases hit the Houston area every day. Again, I am not an economist, but this seems like a recipe for disaster.

If you are on the fence of wanting to sell, during a downturn you'll be less likely to want to put your home on the market at a reduced price unless necessary. If you're starting to feel the itch to move, consider selling this year as opposed to next, because economic changes may make a home sale in 2021 less desirable.