In an earlier blog, we discussed what the best season of the year is to sell your house. In light of today’s market, we’re going to amend that a bit by telling you why the best time to sell your house is when others aren’t selling theirs.
If you’re thinking about selling your house, you should know the number of homes for sale right now is low. That’s because this season, there are fewer sellers listing their houses for sale than the norm.
Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, according to Realtor.com, we saw fewer than 400,000 sellers entering the market in April (see graph below):
While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. This circumstance is referred to as rate lock.
As a recent survey from Realtor.com explains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.
While this wait-and-see approach is right for some sellers, it also creates an opening for more eager and motivated sellers to jump in and list their houses now.
Maybe your family has outgrown your present home and you need more space. Or maybe it’s the opposite and your kids have all moved out and you’re ready to downsize. Whatever the case might be, If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to stand out.
When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties.”
Another thing to consider when deciding to list your house now is equity. Property values have risen quite a bit in the last few years. If you’ve owned your house for a while you’ve probably built up quite a bit of equity. This means that, even with elevated interest rates, the profit you make on the sale of your house could translate into needing only a small mortgage on your new house. In other words, your new mortgage payment could be easily affordable.
Bottom Line
If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers as the best time to sell your house is when others aren’t selling theirs.
At Bay Shores Real Estate we’re happy to provide you with a complimentary property analysis and value report for your current home. This free report will show you how your house compares in value to other homes in your area and what you could likely expect to get for it in today’s market. Let’s connect to get you market ready.
