I recently read an article written by Lawrence Yun, with the summary being inventories of homes for sale on the market remain low with a 4.1 month supply, well below the 6 months seen as normal. Lawrence Yun, the National Association of Realtors (NAR) chief economist, said, “Inventory coming onto the market during this spring’s buying season… was not even close to satisfying demand.” That got me thinking that maybe you or someone you know has been considering selling your home. Here are five reasons for you to sell your home this summer.
The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! More often than not, multiple buyers are competing with each other to buy the same home.
Take advantage of the buyer activity currently in the market! If you have been thinking about selling, get in the game when the buyers are out there.
Housing inventory has declined year-over-year for the last 35 months and is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.
Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.
The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 41 days.
If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly, AND you’ll be able to find a premium home to call your own!
Prices are projected to appreciate by 5.2% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
People who have time off want to get settled before the school year begins. When the kids are off school, it’s an easier time for parents to pack up and move. The weather is nicer and you’re not dealing with snow, ice, or bone-chilling cold days.
Source: Keeping Current Matters
Have you been thinking about moving in the next year? Let’s talk. The Summer just may be the right time for you.
Or…
You heard your neighbor, co-worker, or friend mentioning they are considering moving in the next year. Would you refer them to me? I’d appreciate that!