While the housing market forecast for the second half of the
year remains positive, there may not be a better time to sell than right now.
Here are four things to consider if you’re trying to decide if now’s the right
time to make a move.
1. Your House Will Likely Sell Quickly
According to the most recent Realtors Confidence Index
released by the National Association of Realtors (NAR), homes continue to sell
quickly. The report notes homes are selling in an average of just 17 days.
Average days on market is a strong indicator of buyer
competition, and homes selling quickly is a great sign for sellers. It’s one of
several factors that indicate buyers are motivated to do what it takes to
purchase the home of their dreams.`
2. Buyers Are Willing To Compete for Your House
In addition to selling fast, homes are receiving multiple
offers. NAR reports sellers are seeing an average of 5 offers, and these offers
are competitive ones. Shawn Telford, Chief Appraiser at CoreLogic, said in a
recent interview:
“The frequency of buyers being willing to pay more than
the market data supports is increasing.”
This confirms buyers are ready and willing to enter bidding
wars for your home. Receiving several offers on your house means you can select
the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers
is the current inventory of homes for sale, which while improving, remains at
near-record lows. As NAR details:
“Total housing inventory at the end of May amounted to
1.23 million units, up 7.0% from April’s inventory and down 20.6% from one year
ago (1.55 million). Unsold inventory sits at a 2.5-month supply at the present
sales pace, marginally up from April’s 2.4-month supply but down from
4.6-months in May 2020.”
There are signs, however, that more homes are coming to
market. Odeta Kushi, Deputy Chief Economist at First American, notes:
“It looks like existing inventory is starting to inch up,
which is good news for a housing market parched for more supply.”
If you’re looking to take advantage of buyer demand and get
the most attention for your house, selling now before more listings come to the
market might be your best option.
4. If You’re Thinking of Moving Up, Now May Be the Time
Over the past 12 months, homeowners have gained a
significant amount of wealth through growing equity. In that same period,
homeowners have also spent a considerable amount of time in their homes, and
many have decided their house doesn’t meet their needs.
If you’re not happy with your current home, you can leverage
that equity to power your move now. Your equity, plus current low mortgage
rates, can help you maximize your purchasing power.
But these near-historic low rates won’t last forever.
Experts forecast interest rates will increase in the coming months. Nadia
Evangelou, Senior Economist and Director of Forecasting at NAR, says:
“Nevertheless, 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.”
As interest rates rise, even modestly, it could influence
buyer demand and your purchasing power. If you’ve been waiting for the best
time to sell to fuel your move up, you likely won’t find more favorable
conditions than those we’re seeing today.
Bottom Line
With supply challenges, low mortgage rates, and extremely
motivated buyers, sellers are well-positioned to take advantage of current
market conditions right now. If you’re thinking about selling, let’s connect
today to discuss why it makes sense to list your home sooner rather than later.
Source: Real Estate with Keeping Current Matters
