Key Takeaways:
- Home sales have increased immensely over the past year, which has led to heightened home prices.
- For those who have purchased another property recently, you may be able to cash in your second home for a profit.
- Linda Craft & Team can help you decide whether to keep your second home or sell it for a profit—call us at 919-235-0007 for the personalized advice you need!
High homebuying demand and low supply of homes leads to…
When stay-at-home mandates were enforced last year, households got closer than ever—maybe even too close. Spending more time at home made many homeowners realize their homes didn’t fully fit their new lifestyle needs, which led to heightened home sales.
According to Zelman & Associates, the sales of primary residences grew by a whopping 9% in 2020 alone. This increase in demand was accompanied by the lowest supply of homes for sale in history, which caused prices to surge over the past year. Various home price indexes have been released reporting home values to have risen between 11.3% and 13.9%. Home prices increased by double digits in every region of the U.S. and in 19 of 20 major metropolitan areas.
What if you purchased a second home recently?
The reality is that sometimes we outgrow our homes, and this sentiment became even more prevalent during the pandemic. It’s normal to crave more amenities—home offices, media rooms, learning spaces for school-age children, fitness centers, and large yards are just some examples of sought-after home features.
Due to many people purchasing second homes recently, especially in the past year, the Zelman report cites sales for second homes to have risen a staggering 27% in 2020. Second homes traditionally have higher price tags than the average home due to location—think waterfront resorts and mountain retreats. According to the above stated appreciation rates (11.3% – 13.9%), a home purchased last year for $500,000 would now be worth about $566,000.
If you own a second home, then you have a decision to make
Now knowing that home values have increased drastically over the past year, people who own second homes may consider whether they should cash in for a potential profit. Our real estate experts at Linda Craft & Team recommend thinking back to why you purchased the house in the first place.
If the purpose of the second home was to create distance from the pandemic, are you still going to use it now that the pandemic is receding? Also, now that you may have to go back to the office—and if your students have to physically attend school—is the second home feasibly located? The bottom line is that the benefit you reap from having the second home must warrant the expenses of owning it.
Wanting to Sell Your Home? Let Us Help!
If you own a second home and are questioning whether to continue paying the extra expenses or sell the house and cash in for a potential profit, Linda Craft & Team would love to make your decision easier! Our free, no-obligation home evaluation will accurately value your home, and you’ll be able to determine how much its value has increased. Contact our team of top Triangle Realtors to discuss if selling your home makes sense for you!