As we see 2021 coming to a close, more homeowners are seeing the benefits of this current Sellers’ Market. Why? We’ve seen record-breaking home price appreciation, growing equity, very low inventory, and highly competitive mortgage rates are motivating homeowners to make the move. Whether upsizing, downsizing, or investing – many people are changing their lifestyles.
Case in point – recent data from realtor.com shows a higher percentage of homeowners are planning on listing their houses this winter. This means not only are more homes are about to hit the market, but it will lead to more options for buyers too.
According to George Ratiu, Manager of Economic Research at realtor.com:
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.”
If you’re thinking of waiting until the spring to sell your house, know that your neighbors may be one step ahead of you by selling this winter. If you want to stand out from the crowd, this holiday season is the ideal time to make sure your house is available for buyers. Here’s why:
Sellers Are Still Firmly in the Driver’s Seat
Historically, a 6-month supply of homes for sale is needed for a normal/neutral market. That level ensures there’s enough homes available for active buyers (see graph below):
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows inventory of houses for sale sits at a 2.4-month supply– well below a neutral market.
What Does That Mean for You?
When the supply of homes for sale is this low, it’s much harder for buyers to find homes to purchase. This results in driving up competition among buyers, who then submit increasingly competitive offers to win out against others in the home search process. It’s a domino effect – when this occurs, prices rise and your leverage as a seller rises too, putting you in the best position to negotiate a contract that meets your ideal terms.
While the low housing supply we currently face definitely won’t be solved overnight, sellers this season should move strategically and quickly to maximize benefits. Data shows with more potential sellers planning on listing their homes this winter, selling sooner rather than later helps your house rise to the top of a holiday buyer’s wish list so you can close the best possible deal.
Contact Catherine or Tiffany today to discuss how you can benefit from today’s sellers’ market.