Welcome to 2021! It’s that time of the year when I start seeing people looking for the best ways and times they should sell. Well let’s answer these questions, and talk about what steps you should take to begin the journey.
There’s a sweet spot, typically in the springtime, when it’s perfect to list. Zillow will tell you it’s May 1st to May 15th. However, in Nashville it’s right around now – or in January, after the holidays, that buyers are starting to come out of the woodworks to look for homes. And later than May, around tax season, some buyers begin to see opportunity to make the down payments they need for purchases. Makes sense, this is around the time we get our taxes done and maybe get that refund.
But there are a few factors at play year over year. Let’s look at how Covid-19 is likely to affect the market this quarter, since that’s likely the biggest factor as a result of 2020 that will play into our market this year. Stronger restrictions on buyers because of mass job loss and other economic struggles will limit buyer numbers. We have seen this already. But what seems to be playing a much larger role in our market in middle Tennessee is people not wanting to list their homes for sale. People are asking me when is the best time to sell, and should they wait until after the market “normalizes”. What is normal? We’re living the new normal right now. The fact is that even with a potentially lower number of buyers, we have seen more loan originations in this last year than years prior and we have seen more sales month over month over years prior. So what’s standing in the way of you selling your home? Just you.
Which brings up another important factor: competition. Right now, there’s much less listing competition than during those peak moments in the year. And I think this year, because of the problems we face as a result of 2020, we’re going to see a later and more extended listing season, because people are waiting to sell at the moment. Middle Tennessee homes hold their values well year over year, and I think that 2021 will be no different.
Look at the facts, I’ve attached a graph from the Federal Reserve All-Transactions House Price Index for Nashville, Davidson county, Murfreesboro and Franklin, TN so you can see that even in 2008, our market held value well. On that same page you can see the national graph for the same term.
Allow me to end with one piece of advice. If you’re waiting to see if the market will improve over time, you’re holding your breath for too many unknowns. The things that you should be paying attention to if you’re wanting to sell, and maybe you already are, are what your neighborhood sales look like over the last 6 months to a year, and what types of improvements you have made on your property that will play an important role in your property valuation. Because those two factors are the main things dictating sales prices right now.
I hope this has been helpful. Please check out my site for more information and to see our local market reports.