Is it a Good Time to Sell Your House?
Under normal circumstances, spring is the busiest season for residential real estate with many people choosing to list their houses. Spring of last year was far from “normal” and we’re not quite there this year either. We do know more people are looking to buy homes right now than there are homes available for sale; making this spring a prime time to put your house on the market.
Let’s look at what it means for you if you are thinking about selling your house.
Housing inventory declined 39.6% on a national level in 2020, making it the lowest housing inventory year on record, according to Realtor.com. In addition to the record low inventory, there has been a boom in buyer demand, thus creating a situation where home prices continue to rise.
With so few homes available for sale, buyers will be sure to notice when you put your home on the market. And it is such a competitive market, that it is more likely you will find yourself getting multiple offers for your home. Per the Realtors Confidence Index Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. That alone should make the idea of putting your home on the market very enticing!
This seller’s market gives you a HUGE advantage!
Another advantage of selling now is that when you get that great price for your house, you can use your equity toward a down payment on a new home.
But where will you go to buy a house if there are so few available?
Because there is so much demand for housing, homeowners are not sure what to do. While a house in good condition can get top dollar and sell quickly, there is a fear that once they sell, there might not be another house available in this market that they can afford.
Options for Home Buyers
There are options out there for people ready to sell and buy a new home. One thing to think about is new construction. When the supply of new homes for sale is below 6.5 months (how long it will take to sell existing inventory), builders take advantage of the opportunity and build more homes. In December, the supply of new homes was 3.3 months. With such a low supply, builders are excited to start building to fulfill the needs of home buyers.
If you are looking to move up to a bigger or more luxurious home, you will find that there are more available at the higher end of the market, so now is a great time to find your dream “move-up” home! Or perhaps you are an empty nester near retirement and you are ready to downsize to a smaller, one level home and a 55+ community is the right move for you. Selling now means getting top price for your house and the profit you make can get you into the right home that fulfills your needs and desires.
Another thing to think about if you’re on the fence about selling your home is forbearance. If you have benefited from not having to make full (or any) mortgage payments over the past year, it may be time to get out now! This administration could retract forbearance at any time, thus helping supply; but higher payments or balloon payments could be on the horizon since forbearance is not forgiveness.
Whether you passed on selling your house last year due to the pandemic, or you just recently started thinking about selling, with inventory so low, it’s time to act now!
Getting your house on the market and ready to sell may seem like a big task, but Sandra Nickel and her Hat Team of Professionals are ready and waiting to assist you with every step of the house selling process. Give them a call today at 334-834-1500!