With all the activity we’re seeing in the current housing market, homeowners want to know: Is it smarter to sell my house now, or should I wait until next year? If you’re weighing your options, it may help to know that there may not be a more lucrative time to list than today.
Should I sell my house now? 4 things to know about fall’s housing market
We’re in a booming seller’s market that, ultimately, has an expiration date. If you’re considering a move, there are four strong reasons to sell your home sooner and not later:
1. Your house will probably sell fast.
As a recent Realtors Confidence Index published by the National Association of REALTORS® (NAR) shows, homes are still selling at a rapid pace — staying on the market for an average of only 17 days. This is excellent news if you’re a seller.
Average days on the market reflect current levels of buyer demand. If homes are flying off the shelves, so to speak, buyers need to be prepared to act and put in an offer quickly to beat out their competition.
2. Buyers will likely compete for your home.
Not only is your home expected to sell fast, but you may get multiple offers. The NAR survey also finds that home sellers have received 4.5 offers on average — and these offers are competitive.
This graph depicts how today’s average offers compare to years past:
Right now, homebuyers are prepared for the likelihood of a bidding war, and so, they’re bringing their strongest offers to the table. Getting multiple bids on your house enables you to choose the one that’s the most helpful to you both personally and financially.
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3. Because of low supply, your house will be a hot commodity.
Buyers continue to face inventory challenges — meaning, there aren’t enough homes to choose from. Though we’re seeing some improvements, housing inventory still hovers around record lows.
This chart compares how the low inventory levels of today contrast to previous years; the lighter the color, the lower the supply:
If you want to leverage this spike in buyer demand and put your home directly in the spotlight, selling now, before additional listings become available, makes the most sense.
4. Now’s a prime time for a move-up.
Maybe you, like many home sellers, have found that your current house can no longer meet you and your family’s needs. This makes now an ideal time to sell and move up to the next price range. Right now, the average homeowner has accumulated a record level of home equity. You can utilize this equity, combined with the affordability provided by today’s low mortgage rates, to fund your move.
Today’s rates, which sit around historic lows, are soon expected to increase. Freddie Mac predicts:
“While we forecast rates to increase gradually later in the year, we don’t expect to see a rapid increase. At the end of the year, we forecast 30-year rates will be around 3.4 percent, rising to 3.8 percent by the fourth quarter of 2022.”
When mortgage rates increase, even slightly, it directly impacts your monthly mortgage payment. It also negatively affects your buying power. Purchasing a new home when rates are low, as they are right now, may allow you to buy a bigger, newer, or better-located house without changing your budget.
Because of these conditions, optimism among home sellers is high. According to Fannie Mae’s Home Purchase Sentiment Index, the number of consumers who believe it’s an ideal time to sell has risen higher than in the past few years. Right now, the majority of people (75 percent) think it’s a good time to list a house.
This comes back to low supply and high demand, creating today’s seller’s market. As Danielle Hale, realtor.com’s Chief Economist, explains:
“More homeowners continue to list homes for sale compared to a year ago… Notably, while new listings continue to lag behind a more ‘normal’ 2019 pace, the gap is shrinking. Even though homes continue to sell quickly thanks to high demand and limited supply, new listings are subtly shifting the balance of market conditions in favor of buyers.”
As inventory gradually grows each month, your chances of selling your home quickly and at a lucrative price begin to drop. Selling sooner gives you the greatest potential of leveraging this seller’s market while it lasts.
Find the mortgage that fits just right.
As a seller, you have a blank slate when it comes to your next home — and your next mortgage. So, set yourself up for success: Connect with a friendly loan officer who can help you hand-pick the right mortgage and give you the level of personalized service you deserve.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources deemed reliable but not guaranteed.