Is 2021 a good time to sell your home?

Reader question: Is 2021 a good time to sell? We are in our late 50s.

Our kids are grown and on their own. Our health is good, and we have no mortgage. We are thinking of downsizing into a smaller home in a newer subdivision not far from our current home. Your opinion, please.

Monty’s answer: Questions about future events require a caveat. I don’t have an opinion. I can provide you with a few thoughts or questions that may help you crystalize your thinking.

Stories about historically low interest rates and booming home sales are not a bad thing; it is good news for some consumers. In their exuberance, though, folks sharing the information can forget that there is an equal or opposite reaction for every action.

What you hear

Today is a good time to sell because 1. Homes are selling quickly; 2. Faster closings with fewer issues; 3. Mortgage payments are low; 4. Homes are selling at record prices and more.

If this is such a good time to sell your home, one might wonder why more homeowners are not doing it. For-sale inventory is down drastically. Are we on a bubble?

What you don’t hear

• It may be challenging to find a home to replace the one you are leaving. Low interest rates bring millions of more buyers into the market and create a sparse inventory.

• You will likely be paying a record price for your replacement home. This consideration counteracts the high price for your old home.

• There will be stiff competition, so you must act quickly. Haste in a market like this can have negative consequences.

It appears that many potential home sellers recognize there are downsides to selling in the current market with the limited amount of new inventory appearing. Suppose you have a mortgage on your home. In that case, another way to take advantage of the artificially low interest rates is to refinance. If your current lender is reluctant to reduce your rate or offer a rate reduction that is not as attractive as current rates, moving the loan to a different lender may be an excellent option to consider.

Examples that fit the perfect time to sell your home:

• Not planning on buying another home.

• Move to a lower-priced market.

• Move to apartment living.

Richard Montgomery is the author of “House Money – An Insider’s Secrets to Saving Thousands When You Buy or Sell a Home.” He advocates industry reform and offers readers unbiased real estate advice. Follow him on Twitter at @dearmonty, or at DearMonty. com.