The #1 Reason Not to Wait to List Your House for Sale
Many industries have been nearly ruined by the economic shutdown in direct correlation to the COVID-19 virus. Real estate is not one of them.
According to Mark Fleming, Chief Economist for First American:
“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”
Buyer demand currently holds a very strong status. ShowingTime, which tracks the average number of buyer showings on residential properties, explains that buyer showings are up 61.9% compared to the same time last year. Additionally they went on to explain:
“Normally, real estate activity begins to slow down in the late summer, but this year it peaked in July, August and into September.”
There Is One Big Challenge
Purchaser demand is so high, the market is running out of available homes for sale. Here is a report from realtor.com just last week:
“Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory.”
The National Association of Realtors (NAR) revealed that, while home sales are vastly exploding in a positive direction, the inventory of existing homes for sale is dropping dramatically. Below is a graph of existing inventory (September numbers are not yet available): Homebuilders are increasing construction, but they having some difficulty matching the high demand. Bill McBride, founder of the Calculated Risk blog, in discussing inventory of newly constructed houses, comments:
“The months of supply decreased to 3.3 months…This is the all-time record low months of supply.”
What does this mean for sellers?
Anyone remotely contemplating placing their home on the market should not wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s precisely the situation in today's real estate market.
Next year, when the pandemic is hopefully something of the past, there will be a multitude of properties showing up in the housing market. Don’t wait for that increase in competition in your neighborhood. Now is the time to sell!
Gather your questions or concerns regarding the right time to sell, and reach out to a local real estate professional, who can help answer them and then place your house on the market in this optimal selling time!