Sell or Not Sell in 2021

Sell or Not Sell in 2021

Reasons you should sell or not sell your home in 2021:

Heading into 2021 housing market experts are predicting a year of high demand and rising home prices. After an initial drop in housing market activity last spring coinciding with stay-at-home orders and closed businesses, homebuying and selling rebounded quickly. Buyers are still eager to move, but the lesser supply of homes on the market in many parts of the U.S. is contributing to rising home prices. As a result, it remains a seller’s market that benefits homeowners who are choosing to sell now.

If you’re on the fence about selling, you should think it through and see if you fall into one of the following categories. 

Reasons you should hold nothing back and sell your home in 2021:

  • Sell in 2021: Interest Rate remains low

Even before the first known coronavirus cases in the U.S., economists and real estate professionals predicted mortgage interest rates would remain, on average, below 4% for the majority of 2020. The impact of the pandemic has lowered interest rates even further and drawn out that prediction into 2021 as well. The lowest interest rate last year was at 2.6%, a 50-year low for mortgage interest rates, early this year it has climbed up to 3.05%. While the low rates are promising for an affordable mortgage, there are not enough properties on the market compared to the number of shopping buyers. Expect rising home prices to balance out low rates, at least in part. “Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment,” Interest rates are expected to rise as 2021 wears on – predicts mortgage interest rates will reach 3.4% by the end of the year – but they should still remain low compared to historical averages.

  • Sell in 2021: You have a Starter Home

Especially if you live in a place where home prices are climbing fast and bidding wars are common, homes at entry-level prices – often purchased by first time home buyer – are likely to see plenty of buyer activity through the rest of the year. The price range that’s considered entry level depends on where you live – typically it’s considered the lower third of home sale prices for an area. Danielle Hale, chief economist for, explains that the lack of available homes on the market creates opportunities for sellers to benefit from eager buyers, possible multiple purchase offers and rising prices.

  • Sell in 2021: $250K -$500K or more Equity in your home

For the last several years, home values have been on the rise and that means most homeowners are building equity. Their homes are now worth more than they owe on them, and that trend will persist as they pay down their mortgages and home values continue to increase. Figuring out how much equity you have may sound complicated, but the math is actually simple. Here’s how it works: First, grab your latest mortgage statement and find your current mortgage balance. Next, you’ll need to know your home value. While it’s tempting to use figures from online valuation sites to determine how much your home is worth, they’re not always accurate. If you’re considering selling, please don’t hesitate to contact us to run a free comparative market analysis (CMA) for the best estimate for your house. Once you have those two numbers in hand, simply subtract your current mortgage balance from your home’s estimated market value. The difference will give you a good idea of how much equity you have to work with. Taking advantage of $250,000 for a single and $500,000 for a married couple if you have lived in your house 2 out of the past 5 years.

Reasons you may benefit from waiting and not to sell your home in 2021:

  • Wait to sell: You just finished refinancing, especially you paid Mortgage Points.

If you’re one of the many homeowners who have refinanced recently and especially paid the mortgage points, there’s no reason to consider selling your home in the immediate future. Hopefully, your refinanced mortgage has helped ease financial woes by lowering your monthly payments. If you haven’t considered it, refinancing can be a valid alternative to selling your home. Especially if you’re not seeing the right home for you on the market, it’s OK to be picky. The alternative is to keep it, rent it and use the positive cashflow it generates to buy another property to take advantage of the low mortgage rate.

Wait to sell: You worry about your affordability on your next home.

Even if you’re not unemployed, you may be furloughed from your job, have taken a pay cut or have been warned about layoffs on the horizon. All of these scenarios cast uncertainty on the future of your income, and in most cases you’ll be better off delaying the sale of your house and the purchase of another until you know what the future holds. It’s also a good idea to be in contact with your lender if you’re experiencing any reduction or loss of income to discuss options for deferring mortgage payment for a short period of time or modifying your loan to ensure you can remain in your home for the long term.

  • Wait to sell:  You’re worried about finding your ideal next home.

The caveat of a strong seller’s market is that as a home seller, you may struggle to find a new home to buy. “I can’t just buy any home for sale. I have to find one that I like better than the one I’m in,” the dilemma many home sellers face now. “The matching problem of finding that one gets harder and more risky, so I choose not to sell for fear of not being able to find something to buy.” You could expand your search to include the new construction homes which are a key component that will help ease high demand in the coming year. But “that cannot be fixed fast enough, and not in a year,” Waiting for a more balanced market is a good idea for some homeowners, and it’s unlikely to hinder your ability to get a good price for the house you sell. In a market where supply and demand are more balanced, you’re less likely to see multiple offers and sale prices well above the asking price, but you’ll still see positive home value growth.

If you still can’t make up your mind; give us a call at 949 698 0117 or drop us a line at, Cindy Chin(Top Chinese Realtor | Best Chinese Speaking Agent in Newport Beach | Best Chinese Speaking Agent in Orange County) will offer your a free consultation and help you make a well-informed decision.  With Annual Sales Volume from 2020 Cindy Chin has been voted as Top 1% ALL-STARS Real Estate Agent in Orange County by Orange Coast Magazine again. You are certainly in a good hand!