Many homeowners think selling in the spring when more buyers are in the market is the way to go. In reality, it’s more about the ratio of buyers to sellers that creates opportunities. Selling when the fewest number of homes are available to buy is what puts sellers in the driver’s seat. With today’s high buyer traffic and low inventory, this powerful combination makes now the optimal time to sell – before your neighbors put their homes on the market in the spring. Here’s how it breaks down.
High Buyer Demand
Buyer demand is strong right now, and not showing any signs of slowing down. ShowingTime, which tracks the average number of buyer showings on residential properties, recently announced that buyer showings are up 64.1% compared to the same time last year. Similarly, Realtor.com states:
“The divide between supply and demand is striking: compared to last year, total new listings increased by .22%, while total sales increased by 19.29%. This trend could further drain inventory as 2021 approaches.“
Low Inventory of Houses for Sale
Realtor.com is predicting the housing market will remain competitive in 2021. Purchaser demand is so high, the market is running out of available homes for sale. Areas outside major city limits, such as Santa Cruz and Monterey Counties, are of particular interest to homebuyers because they aren’t commuting to the office anymore. Recently, Realtor.com reported:
“With the already limited inventory of homes for sale relative to buyers pushed further out of balance by the pandemic that brought out buyers in mass and kept many sellers pondering their options, home prices skyrocketed surging up more than 10 percent over year-ago levels by the late fall.”
Redfin anticipates the rate of homeownership will rise above 69 percent for the first time since 2005. And according to Zillow, the appreciation price is expected to exceed 10 percent in 2021. Chief Economist Lawrence Yun was quoted in the Wahington Post saying:
“National Association of Realtors (NAR) chief economist Lawrence Yun predicts new-home sales will jump 21 percent and existing-home sales will climb 9 percent in 2021. He predicts home prices will rise by 3 percent in 2021.”
What Does This Mean for You?
If you’re thinking of putting your house on the market, don’t wait. A seller will always negotiate the best deal when demand is high, and supply is low. That’s exactly what’s happening in the real estate market today.
As 2021 progresses, and the pandemic is hopefully behind us, there will be many more houses coming to the market. This includes existing homes and newly built homes. Don’t wait for that increase in competition in your neighborhood. Now is the time to sell.
Strock Bottom Line
Let’s connect today to get your house on the market at this optimal time to make a move.