As we near the end of the year, most markets are still seeing strong sales, multiple offers and other signs that indicate the seller's market will continue into 2022. Record-breaking home price appreciation, growing equity, remote work, and competitive mortgage rates are motivating sellers to make a move to sepspecifically address their desired lifestyle needs. We'll ttalk about what a sellers market actually is later in this post.
Info from realtor.com shows a larger share of homeowners are planning to list their houses this winter. So, that means more homes are about to hit the market, which will lead to more choices 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. A big advantage of selling now is that serious buyers are continuing to look through the holiday season. I encourage you to run some holding numbers, which means adding up the cost of holding your home for another 6-8 months and comparing it to rising home costs in the place where you intend to purchase, whether it's here or in another area.
If you want to stand out from the crowd, this holiday season could be a good 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 or neutral market. That level ensures there are enough homes available for active buyers (see graph below):
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows the inventory of houses for sale sits at a 2.4-month supply. This is well below a neutral market.
What Does That Mean for You?
When the supply of homes for sale is very low, it’s much harder for buyers to find a home to purchase. This drives up competition among buyers, who then submit increasingly competitive offers to win out against others in the home search process. As this happens, 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.
And while the low housing supply we're facing won't be solved overnight, sellers should move quickly to maximize their potential. As the data shows, with more prospective sellers planning to list 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.
Bottom Line
Listing your home over the next few weeks gives you the best chance to be in front of buyers competing for homes this holiday season. Let’s connect today to discuss how you can benefit from today’s sellers’ market.
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