A newly-released Homeowner Sentiment Survey found that 23% of current homeowners were thinking about selling their homes, but hadn’t listed them for sale yet.
Housing inventory is down nearly 5 percent from this time last year according to the National Association of Realtors (NAR). Right now, there are 4.8 months of home inventory, which is substantially below the 6 months of supply indicating a balanced or normal housing market.
It’s been an extra hot summer, but it’s almost over (at least for kids going back to school). Home sales have also been hot this summer and that’s one of the reasons why now is the time to sell your home. Here’s a few more reasons why there’s “no time like the present” if you’re thinking of listing and selling your home.
1. Buyer Demand Is White Hot
One of the ways to measure buyer demand is to look at foot traffic. This refers to the number of people who are physically out browsing homes for sale. The most recent foot traffic data shows that more prospective buyers are looking at homes right now than at any point in the last two years.
Obviously, the best time to sell is when buyers are hungry to buy and this stat shows that there’s a huge number of buyers ready to find and buy a new home.
2. Inventory Levels Have Dropped
This means sellers face less competition than they used to. In fact, The National Association of Realtors recently found that housing supply (or inventory) has fallen to 5.0-month of supply across the nation. This is considered a sellers market — a normal (or balanced market) has 6 months of inventory. When a inventory levels reach seven months and beyond, the market is in the buyer’s favor.
Since there are fewer homes to choose from, your home has a better chance of being noticed and sold.
3. Demand is Pent Up
Many homeowners wanted to move years ago, but they had negative equity in their homes. Now that housing sales and values have increased, they’re in a better position to sell an old home and buy a new one.
As their equity grows, more will sale. That means you’ll have more competition in the future.
4. Home Prices Are Appreciating Again
In a recent report, RealtyTrac, noted that sellers (in 2015) have seen the biggest gains in home appreciation since 2007. In June, sellers also averaged a sell price above estimated market value for the first time in two years.
5. Prices Should Keep Going Up
If you plan to upsize (sell and buy a bigger, more expensive house) you will probably pay more in the future than you will right now. Some real estate experts expect prices to increase nearly 20% by 2019.
Interest rates also sit at historic lows, but many think that will end soon. Some lenders expect a 1 percentage point increase over the next year (from 4% to 5%). So if you sell and buy later, you’ll spend more because your buying power will have decreased.
List Your Home for Sell Today
Call us today at 912-844-9000 and we can evaluate the value of your home. In fact, we have some buyers just waiting for the right home to come on the market. Maybe it’s yours.