Look forward to a lot less competition
Here’s an overview of why selling this winter may be smarter:
- Even after the buyer boom seen in 2020, it continues: Buyer demand is outpacing the supply of available homes for sale, so homebuyers frequently compete to snatch up limited listings.
- Housing inventory remains low, sitting far below the six-month supply required to support a healthy market; factors like a shortage of new construction spanning the last decade and fewer sellers listing throughout the pandemic may be to blame.
- With mortgage rates still hovering around historic lows, this could be the ideal time for you to get the extra space you need for remote work or to start your family’s next chapter in a new location.
Prequalify now to find out why it’s a great season to sell.
Another perk to keep in mind if you’re selling this winter: The buying and selling process is likely to move faster.
Because of the competitive market conditions mentioned above, homebuyers have to do whatever they can to stand out — including getting prequalified for a mortgage before they start shopping. This speeds up selling significantly. It can also make selling simpler. Buyers may know how much they can afford before they start attending showings and submitting offers on your house.
Many sellers are seeing homes “fly off the shelves.” That is to say, homes are selling quickly – roughly three days faster* (18 days) than they were just a year ago. Notably, homes are selling much sooner right now than they typically do in the winter.
When realtor.com polled American homeowners who were interested in selling this year, survey results showed that nearly one-in-four sellers hoped to take advantage of today’s hot market conditions. While the number one reason for selling was outgrowing their current home — related to space, location, and features — the number two motivator was to leverage the current housing market.
The survey also showed that:
“The third-highest ranked reason was a desire for a smaller house, which provided for less maintenance. Generationally, this was a top motivator by a wide margin for Baby Boomers and homeowners from the Silent generation, whose share of responses was three-to-four times larger than that of Millennials.”
When you list, the odds are high that you’ll have multiple offers to choose from. The average home is currently receiving 3.7 offers, up from the 3.4 offers on average seen the year before.* Of these offers, roughly 42 percent are coming in above list price.
CoreLogic’s latest Homeowner Equity Insights Report also shows that rapidly appreciating home prices have contributed to rising home values. As a result, the average homeowner has gained $51,500 in home equity, adding up to an almost $2.9 trillion nationwide increase year-over-year.
Odeta Kushi, First American’s Deputy Chief Economist, quantifies:
“Remember, U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation-adjusted terms, homeowners in Q2 had an average of $280,000 in equity — a historic high.”
With the help of these equity gains, you should see a greater return on your investment when you sell – turning a profit that can be put into savings or used for a new down payment.
Does your next dream home await?
As you’re prepping to sell and move up or even downsize, you probably have questions. How much down payment will I need for a new house? Should I sell my home before I buy another one? Will I make more money if I become a landlord? Prequalify and connect with a local loan officer who can get you answers — and get you into your new home — fast.
For educational purposes only. Please contact your qualified professional for specific guidance.
Sources deemed reliable but not guaranteed.