The Best Time To Sell Your House Is When Others Aren’t Selling

The Best Time To Sell Your House Is When Others Aren’t Selling Simplifying The MarketIf 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, 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. It’s called 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 sellers to jump in now.

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.”

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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. Partner with a real estate professional to get your house on the market.

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The Impact of Inflation on Mortgage Rates

The Federal Reserve’s (the Fed) decision to raise the Federal Funds Rate last week had an impact on the housing market. During high inflation, expenses such as gas and groceries start increasing and in this case, raising the Federal Funds Rate is an effort to lower inflation. The Fed’s decision doesn’t directly determine what will happen with mortgage rates; however, it is expected that lower inflation rates will also cause mortgage rates to fall. Experts believe that mortgage rates will descend later in the year as the consumer price inflation calms down. If you are unclear on these projected changes and how they may impact your homeownership plans, it’s best to contact a trusted real estate professional who stays up to date on market changes. Finally, at Daytona Beach Property Search, you can find many popular home searches.

Why Today’s Housing Market Is Not About To Crash

There has been concern recently that the housing market may be headed for a crash. Although, given the affordability challenges in the housing market and the recession talks in the media, the worry is understandable. However, the data clearly shows that today’s market is much different than it was before the housing crash in 2008. Here’s why:

Getting a home loan was much easier during the 2008 housing crisis than today, as lending standards were different which gave homeowners the opportunity to qualify for a home loan or refinance an existing one. This allowed lending institutions to take on a lot of risk in both the person and the mortgage product offered. Consequently, there were mass defaults, foreclosures, and falling prices. Currently, potential property purchasers face higher standards from mortgage firms.

While the pandemic resulted in a spike in unemployment over the last couple of years, the jobless rate has already recovered back to pre-pandemic levels. During the Great Recession, many people stayed unemployed for a more extended period, which was different from what occurred this time due to a swift job recovery. Considering that many people are employed today, there’s less risk of homeowners facing hardship and defaulting on loans. This helps put today’s housing market in good stead, and there’s a lower risk of more foreclosures coming onto the market.

During the housing crisis, there were many homes for sale (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Today, there’s a shortage of inventory available overall, mainly due to years of underbuilding homes. The unsold inventory is at just a 2.6-months’ supply, and this time there just isn’t enough inventory on the market for home prices to come crashing down like they did in 2008.

The low inventory of homes available for sale helped keep upward pressure on home prices over the course of the pandemic. As a result, homeowners today have near-record amounts of equity, which puts them in a much stronger position compared to the Great Recession.

The graphs in the article indicate that today’s housing market is headed for a crash as there’s a shortage of inventory, homeowners have a lot of equity, and unemployment rates have returned to pre-pandemic levels. The current data clearly shows that today’s market is nothing like what occurred in 2008.

It May Be Time To Consider a Newly Built Home

If you’re trying to buy a house in today’s market, you may find that there are very limited options available for sale. It might feel like an uphill battle to find the perfect home for you because there just isn’t that much to choose from. If you want to open up your options, then you should consider a newly built home. According to the latest data from the US Census, there’s positive news when it comes to new home construction. When you look at the first three months of this year, you’ll find that more new homes are completed and ready to sell. This gives you more options for your search, and builders have started construction on more single-family homes as well. This means that there are more homes intended for one household in the beginning stages of construction, allowing you the opportunity to customize one to your liking. And, while this is all good news for broadening your options for your home search, there are other perks that come with considering a newly built home.

When you buy a new home under construction, you can tailor it to your unique needs and taste. Building a home also means customizing it so you can have the certain kind of flooring, sunroom, or any other special amenity you have been dreaming of. Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one. Moreover, because everything is new, you’ll likely find there are fewer maintenance and repair needs upfront. If something does go wrong with your new home, many builders also include additional home warranties. Lastly, building a home gives you the opportunity to incorporate more energy-efficient options that can help lower your costs over time.

If you’re having trouble finding your dream home in today’s market, it may be time to consider newly built homes as an option. Partner with a real estate professional to learn more about what’s available in your local area.

Reasons To Sell Your House Today [INFOGRAPHIC]

Reasons To Sell Your House Today [INFOGRAPHIC] Simplifying The Market

Some Highlights

  • There are a number of reasons why it still makes sense to sell your house today.
  • Inventory is low, which means that your house will stand out. Additionally, the number of offers on recently sold homes is on the rise.
  • Most homeowners have a lot of equity, which can fuel a move.
  • If you’re thinking about selling your house, reach out to a local real estate expert to discuss if now may be the time to move.
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Buyer Activity Is Up Despite Higher Mortgage Rates

Reports show that despite the rise in mortgage rates, home buyers seem to be more active this year. The ShowingTime Showing Index data revealed a promising trend during the first two months of the year, indicating an increase in buyer demand. Even in February, when colder temperatures would usually curb activity, buyer traffic surged because of the limited number of homes available for sale. Comparing February’s foot traffic with the past six years’ activity confirms that this year was one of the best Februarys for home buyer activity. The data suggests that more homebuyers were on the lookout for their dream abode, even with the upsurge in mortgage rates. This increased buyer activity may indicate that the housing market is still going strong this year, with home buyers eagerly searching for suitable homes. For sellers looking to put their homes up for sale, this report provides some good news as real estate professionals can aid in listing and bringing your home to the attention of potential buyers.

Ways To Overcome Affordability Challenges in Today’s Housing Market [INFOGRAPHIC]

Ways To Overcome Affordability Challenges in Today’s Housing Market [INFOGRAPHIC] Simplifying The Market

Important Takeaways

  • Considering nearby areas in your search may lead to more options in your budget, given the limited availability of homes in the market today.
  • Working closely with a reliable lender can help you evaluate alternative financing options and assist you in finding resources for down payment assistance if needed.
  • Consulting with trusted professionals in the real estate industry can provide expert guidance and support if you are concerned about rising costs and have been searching for a home.

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James Jestes, Your new favorite Realtor.

Hello my name is James Jestes and I am a Broker Associate with eXp Realty.  I am dedicated to helping you find your perfect new home. I’m a no hassle, no pressure agent here to help you accomplish your real estate goals. Please reach out to me and let me know how I can help you purchase or sell your home.

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James Jestes
eXp Realty
386-315-4744
James@JamesJestes.com

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