Why Listing Your House in December Could Pay Off
With the holiday season coming, you might be wondering if now is a good time to put your home on the market. Historically, December has always been one of the slowest times to sell a house.
Most people’s holiday to-do list doesn’t leave a lot of room for selling a home.
But with the ongoing pandemic, everything in real estate is still defying historical trends. Here’s why listing your home this December could very well result in several strong offers.
What Drives the Real Estate Market?
The main factors that drive interest in a home are supply and demand. If supply is low and demand is high, it doesn’t matter if it’s the holiday season. There will still likely be a lot of interest and activity in your property.
Are There a Lot of Homes on the Market Right Now?
Housing inventory early in the year was historically low and has steadily been on the rise. In January 2021, the average monthly supply of homes across the United States was just 3.6. By October 2021, that jumped to 6.3. (Interested in housing supply over the years? Check out the data here.) For context, according to Redfin, the average housing supply is around four to five months.
What’s the important takeaway here? Despite this recent surge in available homes, it has not slowed one important metric: the number of offers received.
Is Demand High?
Yes! The people who are still looking for homes are highly motivated to buy. The sellers’ market in Northern Virginia has made it difficult for buyers to break into real estate over the last year. Many people have lost out on multiple homes due to bidding wars, competition with all-cash investor offers, and the sheer speed of homes going under contract.
Those still looking for homes are anxious to buy. That could explain why US sellers got an average of 3.7 offers on their homes in September.
See the full state breakdown below:
Source: National Association of Realtors (NAR) report
Across the nation, this means every person looking to sell a home in September 2021 received nearly four offers. Even with inventory rising, homes are still hot commodities.
You Only Need One
When it comes to real estate, the more people you can get interested in your home, the better. More people viewing your home means more people who are potentially interested. More interested parties means more offers. And once you’re dealing with multiple offers, you’re likely looking at a bidding war—and more money for you. In many ways, real estate is a numbers game.
That being said, it’s also important to remember you only need one offer…if it’s the right one. If the right person sees your home and makes an amazing offer, you can walk away with the terms you want.
Buyers Want to Act Now
Another big factor contributing to these multiple offers is that buyers are feeling a ticking clock.
While no one knows for sure what the real estate market is going to do, there is conjecture that housing prices and interest rates could both rise in the coming year.
Buyers want to lock in today’s terms, and they’re willing to make concessions on some important contingencies, such as the home inspection and appraisal, to ensure their offer is selected. (Should you bend on home inspection and appraisal when you’re looking to buy? Check out this article for a full discussion.)
So, Should You Sell Your Home This Holiday Season?
The answer to this question depends on many factors.
- Are you ready to move?
- Do you have another home lined up?
- Do you have your financing and preapproval ready?
- Will it be a smart financial decision?
- Will it be a smart personal decision?
For many people, selling a home is one of the most significant financial moves they’ll ever make. But if you think selling is the right step for you, now is an excellent time. Despite it being the holiday season, the data shows homes are still highly in demand.
While other sellers take a break over the holidays, you have a great window of opportunity to get your home in front of many highly motivated buyers.
Your open house.
Have questions? Want to sell but you’re not sure where to start? Reach out today. With Ray Gernhart and Associates, you get real estate as it should be!
