2020 was a difficult year for all parts of the economy throughout the country. And this includes the real estate and housing market. Because of the impact of the COVID-19 pandemic, real estate transactions of all kinds have been brought to a grinding halt throughout the country. Since the enactment of lockdown initiatives, buyers haven’t been able to get out and look for houses. As such, many home sellers have also had to reconsider their listing status because of the limited market.
However, as we’ve entered 2021, things are starting to look up. The real estate market forecast is now indicating slow home price growth in Minneapolis MN, which is a great sign if you’re planning to sell a house. In addition to this, there have also been a couple more real estate predictions for 2021 that seem to be harbingers of good things to come. These include the fact that many states have begun to loosen their lockdown regulations, as well as prepared reopening plans and mask mandates. All in all, we’re seeing tons of information that gives us hope that 2021 will be a better year for the real estate market.
In this blog, we are going to take a deep dive into the subject of real estate in the coming year and tell you everything you need to know about selling your house in 2021. For more interesting general selling tips like this, you may also want to read another one of our blog posts that expand on How to Take the Emotion Out of Home Sales in Minneapolis MN.
All You Need to Know When Selling Your House in Minneapolis MN
Below, we’ll update you on what you need to know when it comes to selling your house in Minneapolis MN in 2021.
Many families had to put their houses up for sale and down-size due to the financial impact they faced in 2020 during COVID lock-downs. As such, in 2021, inventory is currently low on the buyer’s market. This has caused homes to be in demand in the early months of the new year. However, the predictions indicate that this trend will be reversing in the upcoming months.
As a homeowner, you should be aware of the fact that the real estate market in Minneapolis MN will soon be flooded once again. This is because of the fact that it is highly unlikely that all those families who fell under the mortgage forbearance act guidelines in 2020 will be able to begin making timely payments once again. As such, the market is expected to soon flood. So if you’d like to get the maximum price you can when selling your house in Minneapolis MN, it would be best to sell as soon as possible before the market floods with listings.
Prices May Drop
In addition to the imminent flooding of the real estate market in Minneapolis MN, the expected growth in delinquencies may mean downward pressure on home prices. This is something else that homeowners need to know when selling their Minneapolis MN homes in 2021. Many sellers will wish to ignore these changes and hold onto pre-covid pricing. However, such an action would cause their houses to sit for long periods on the market, which will lead to an overall lower sales price after holding costs.
So, when it comes time to set the true value of your property, take into account all current market trends, as well as the annual taxes, monthly expenses, maintenance expenses, and any other expenses you may face during the sale process.
Mortgage Rates May Rise
Homeowners also need to know about the economic trends that are expected to rise up in mortgage rates in 2021. The Federal Reserve ( who are the largest single buyers of mortgage-backed securities) will likely keep short rates lower. However, this is expected not to hold true for many of the other longer-term treasuries, banks, or mortgage companies. While these companies are not directly involved in setting the current mortgage rates, their policies indirectly affect these rates.
In addition to this, new banking capital requirements that are due to come into effect later in 2021 will likely cause mortgage rates to rise as well.
Finally, as delinquencies rise, homeowners also need to know that the value of their properties will change very little towards the positive over the coming year if they are thinking about selling their Minneapolis MN homes in 2021. As such, moving forward with a sale now would probably be the best course of action if you’d prefer not to lose any equity. Should these predictions, of dropping property values and rising mortgage rates, come to fruition, homeowners are likely to see a loss of equity by holding onto their properties in 2021.
Are you planning on selling your Minneapolis MN house in 2021? Be ahead of the curve by selling your house in Minneapolis MN to FastPath Home Buyers! As 2021 proceeds, market prices will likely drop as the market floods with distressed properties. However, you can avoid all of this by selling directly to FastPath Home Buyers. With extremely quick closing timelines, we’ll make the process easy. We can have cash in your hands and your house sold in as little as 7 days.
So what are you waiting for… contact us, either by filling out the short form down below or calling (612) 351-2384, and we’ll get back to you with the Highest Possible All Cash Offer.
Now You Have The Knowledge. Get Your Free Offer Now!We give you actionable data to make the best decision.
Find Out How Much Cash We Can Offer For Your Minneapolis House!