Why Waiting until Fall or Winter Could Be Too Late
Enticed by stories of people’s homes going for a million over asking? Wondering if now is a good time to sell? Here are four major indicators that not only is now a great time to sell…but the window of opportunity could be closing.
1. Homes Don’t Sit Long in This Market
One of the hardest things about selling a home is the uncertainty of the timing. Will your home sell? How long will it take? When should you start looking to buy your next house?
One of the biggest upsides to selling right now is capitalizing on this trend of quick sales. According to a recent Realtors Confidence Index, homes sell, on average, after just seventeen days on the market. That’s down from twenty-six days at this time last year.
Quick sales are indicative of a market where buyer competition is high with low inventory and where buyers are motivated to make concessions just to get into the market. Both are great news for sellers!
“OK. We listed ten minutes ago, and now all we have to do is…oh, wait. There’s the first offer.”
2. Bidding Wars Are the Norm
Bust out the (bidding) war paint! It’s a jungle out there! The same report from the National Association of Realtors indicates that the average home receives five offers before selling. With multiple people fighting over seemingly every house that comes available, bidding wars are an increasingly common part of the real estate market.
Multiple offers not only increase the likelihood you’ll receive an over-asking offer, but it also gives you the freedom to pick whichever offer best suits your situation. Maybe a quick close is even more important to you than the offer price. Maybe a waived inspection is the thing to tip the scales. Whatever you’re looking for, the ability to pit offers against each other means you’re more likely to get the exact terms you want.
“I think we found the open house, honey.”
3. Strike While Mortgage Interest Rates Are Low
For many people, their home values have done nothing but go up over the last year. This means they have more equity in their homes than ever before. If you’re thinking about making the move to a house that better suits your new needs—home office, y’all!—the timing has never been better.
Mortgage interest rates are still crazy low, making homes more affordable, and the accrued wealth from increased home values can often take care of the down payment on a new home that ticks all your boxes.
Interest rates won’t stay where they are forever, though. Nadia Evangelou, senior economist and director of forecasting at the National Association of Realtors, says, “as the economic outlook for the United States looks brighter for the rest of the year, mortgage rates are expected to rise in the following months.”
Even a modest rise in interest rates could deter or price out some potential buyers. Upgrading your home now helps ensure you lock in these historically low rates and have the largest possible pool of potential buyers.
Low interest rates, like all good things, must come to an end. Just take this baby, for example, who starts out so sweet and then grows up to be a tax auditor for the IRS.
4. Your House Is the Star of the Show! (But for How Long?)
Housing inventory is extremely low right now, making it challenging for buyers…but favorable for sellers. Total housing inventory sat at 1.23 million at the end of May. That’s a 7 percent uptick from April but a 20.6 percent decrease from this time one year ago.
Like interest rates, however, market indicators point to an upcoming rise in inventory. First American Deputy Chief Economist Odeta Kushi says, “It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”
With fewer homes on the market, your listing is more likely to shine. As inventory increases, buyers are able to be pickier and pickier about where they put their money. Striking now, before an increase in listings, could help you best capitalize on these favorable market conditions.
“Yeah, it’s nice. But those stair risers are a quarter inch higher than I’d like. I think we’ll pass.” —A Typical Pre-Pandemic Buyer
Conclusion
Experts forecast a strong housing market well into the second half of the year, but the conditions right now could be the best sellers are going to see. Listing before interest rates and inventory increase puts you in the best position to maximize your buying power.
If you’re considering listing your home but have questions, reach out today! We’re always happy to answer questions and to help you decide what’s best for you (buy, sell, or stay put).
