The housing market is no longer the whirlwind it once was during the “unicorn years.” Still, there’s a crucial factor that makes now a golden opportunity to sell your home—supply.
The National Association of Realtors (NAR) reports that housing inventory remains astonishingly low. But what does this mean for you, and why is it an excellent time to put your house on the market?
Housing supply is assessed in two ways: the number of available homes on the market and the months’ supply, indicating how long it would take to sell all available homes based on current demand. Typically, a balanced market holds about a six-month supply of homes. Presently, we’re inching closer to a balanced market, but certain areas still lean toward being a seller’s market. In fact, the current months’ supply is roughly half of what’s typical for a normal market. This scarcity of homes in relation to buyer demand presents a compelling advantage if you’re looking to sell.
Lawrence Yun, chief economist for NAR, emphasizes, “There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.” If you’re a seller, this puts you in a prime position. There are eager buyers ready to purchase, and the limited supply of homes means your property will attract attention, especially if priced correctly and in good condition.
While financial considerations are vital, your personal needs play an equally significant role in deciding whether to sell your home. Bankrate advises, “Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market.” So, ask yourself why you want to move in the first place.
Chances are, your primary motivation goes beyond finances. It likely stems from a change in your life or a shift in what you need from your home.
Builder Online’s recent research identifies some of the most common reasons sellers are on the move today:
* Marriage: Newlyweds may need more space or want to start fresh together.
* Divorce: Separation often necessitates finding new living arrangements.
* Births: Growing families may require additional square footage.
* Deaths: Coping with loss can make staying in the same home difficult.
* Retirement: Retirement often prompts downsizing, relocating or pursuing a dream location.
If any of these reasons resonate with you, it may be the right time to find a home better suited to your evolving needs. A recent Realtor.com survey shows that you’re not alone—25 percent of sellers are moving for personal reasons, even in the face of current mortgage rates.
If changes in your life require you to sell now, don’t let mortgage rates deter you. You have options to facilitate your move. You can use the equity in your current home toward your next purchase. With homeowners currently holding substantial equity, you might need less financing than you think, or you can even consider an all-cash purchase to avoid borrowing altogether.
If you’d like to learn more about the current local market conditions or explore available options, or subscribe to local market statistics that you can follow at your own pace, reach out to Theresa Grant, Real Estate Broker (DRE #01202881) at [email protected]. You can also follow her on Instagram, @theresagrantrealtor, and YouTube, @theresagrantrealtor.