Spring is often seen as the ideal season to sell a home. Warmer weather brings buyers out of hibernation, many hoping to move before the next school year begins. The COVID-19 pandemic disrupted the usual spring buying season, yet there are reasons for cautious optimism for sellers.
Zillow recently forecasted a modest decline in home prices this year, projecting a drop of roughly 2 to 3 percent, but the broader housing picture still shows strength. Svenja Gudell, Zillow’s chief economist, notes that housing fundamentals are stronger now than they were before the Great Recession, which bodes well for the market. She also points out that demand persists and that buyers, sellers and agents are increasingly comfortable completing transactions where possible.
Mortgage rates for a 30-year fixed loan remain historically low—around 3.43 percent—making this an attractive time to buy or sell from a financial standpoint. Despite the pandemic, buyers are still active. Data from the Mortgage Bankers Association showed a 12 percent jump in mortgage applications for the week ending April 24, and several large states reported increases in purchase activity. These signs suggest the delayed spring market may be starting to recover.
Expert real estate insights
I spoke with Frank DeRonja of DeRonja Real Estate in Raleigh, North Carolina, who offered practical insights from nearly two decades in the business. His observations can help sellers navigate the market during COVID-19.
Seller flexibility
Sellers should be prepared to accommodate reasonable buyer requests. Small repairs, leaving window treatments, or adjusting a closing date can make a difference. With market conditions shifting, a flexible approach can help keep deals on track.
Location matters
Location remains one of the most important factors in selling a home. Local market dynamics and price tiers influence how quickly and easily a house will sell. In areas where inventory stays tight, sellers can still attract buyers, though they may receive fewer offers than in stronger markets.
Supply and demand
Even if the pool of active buyers shrinks temporarily, many sellers may take their listings off the market until conditions improve. That behavior can keep the balance between buyers and sellers relatively steady in some regions. Frank notes this is already happening in parts of central North Carolina.
A future surge?
Sellers who have temporarily withdrawn listings may return once restrictions ease, potentially increasing inventory and competition. If a significant number of homes re-enter the market as the pandemic subsides, selling could become more challenging in the months that follow.
Selective lenders
While mortgage application volumes are rising, lenders are exercising greater caution. Stricter underwriting standards mean some buyers may find it harder to secure financing, even though low interest rates may encourage creditworthy buyers to move forward.
Ready to sell?
Depending on local conditions, now could be a sensible time to list your home. The best next step is to consult a knowledgeable local real estate professional who can assess your neighborhood, current inventory, and pricing trends to help you decide whether to sell now or wait for a clearer market picture.