Thinking of Selling Your House? Now May be the Right Time
Inventory is arguably the biggest challenge for buyers in today’s housing market. There are more buyers actively looking for homes than there are sellers selling them, tipping the scale in favor of sellers. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), total housing inventory is down 18.8% from one year ago. Inventory is well below last year’s levels, and homes that do come to market are selling quickly.
Sam Khater, Chief Economist at Freddie Mac, notes:
“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage.”
Why Is Inventory so Low?
There are many reasons it’s hard to find a home today, from an undersupply of new construction to sellers pausing their moving plans due to the current health pandemic. A key factor is that current homeowners are staying in their homes longer. This fundamental market shift began about 10 years ago, contributing to the shortage of homes for sale. In the 2019 Profile of Home Buyers and Sellers, NAR explained:
“In 2019, the median tenure for sellers was 10 years…After 2008, the median tenure in the home began to increase by one year each year. By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years.”
With the strength the market has gained over the last 10 years, today’s homeowners are in a much better equity position. Now is a fantastic time for those ready to break the 10-year trend and sell their houses—especially while buyer demand is high and inventory is low. It’s a prime time to sell. Additionally, with today’s historically low interest rates, sellers have the opportunity to maintain a low monthly payment while upgrading to a larger home or finding features they’ve been seeking without costly renovations. With more new homes poised to enter the market this year, homeowners ready to make a move may have a golden opportunity.
Bottom Line
There are simply not enough houses for sale today. If you’re ready to leverage your equity and sell your house, let’s connect today. It’s a great time to move while demand for homes is extremely high.
