When selling a house, most clients hope for a quick and profitable transaction that puts them in a position to make a great move. Right now, after a year of rising prices and with inventory at record lows, there could not be a better time for them to list. If you have a client who has been patiently waiting for the best time to win as a seller, the market will be calling their name this spring. Listed below are four reasons to share why it is the perfect time to sell their home.
1. There’s high demand from homebuyers.
Buyer demand is strong right now and they are very active in the market. ShowingTime, which tracks the average number of buyer showings on residential properties, recently announced that buyer showings were up 51.5% in January compared to the same month last year. Daniil Cherkasskiy, Chief Analytics Officer at ShowingTime, notes:
“As anticipated, demand for real estate remains elevated and continues to be affected by low levels of inventory…On average, each home is getting 50 percent or more requests this year compared to January of last year. As we head into the busy season, it’s likely we’ll push into even more extreme territory until the supply starts catching up with demand.”
In this market, more showings often means more competition, priming the environment to receive offers well above the listing price.
2. There aren’t enough houses for sale.
Purchaser demand is so high and inventory is so low, the market is running out of available houses for sale. Recently, realtor.com reported:
“Nationally, the inventory of homes for sale in February decreased by 48.6% over the past year, a higher rate of decline compared to the 42.6% drop in January. This amounted to 496,000 fewer homes for sale compared to February of last year.”
The National Association of Realtors (NAR) also revealed that, while home sales are skyrocketing, the inventory of existing homes for sale is continuing to drop dramatically. Houses are essentially selling as fast as they’re hitting the market – in fact, NAR reports that the average house is on the market for only 21 days.
It’s this imbalance between high buyer demand and a low supply of houses for sale that gives sellers such an advantage. So, it would benefit your prospective sellers to remind them they will always negotiate the best deal when demand is high and supply is low; exactly the conditions we’re seeing today in the real estate market.
3. It’s a great way to use your home equity.
According to data from CoreLogic, the average homeowner gained $26,300 in equity over the past year, and that number continues to grow as home values appreciate.
Mark Fleming, Chief Economist at First American, noted last year:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”
This equity can be operationalized to upgrade to a dream home or find something that better align’s with your client’s current needs.
4. It’s a chance to find a home that does more for them.
So much has changed over the past year, including what many of us need in a home. Spending extra time where we currently live is enabling many to re-evaluate homeownership and what we find most important in a home. Clients, having been cooped up for the past year, may finally be ready to transition into a new home that is a better fit for their new needs.
Whether it’s a house that has features suited to working remotely, space for virtual or hybrid schooling, a home gym, or something else, selling this spring gives your clients a chance to make a move and find the home of their dreams. While the pandemic is moving under further control in most of the country, some changes, such as remote work, may have a degree of permanency.
Today’s housing market belongs to the sellers. Advise clients that if they have considered making a move but have been waiting for the right market conditions, the wait may be over. Review the above four reasons with them and ask what else they may be waiting for.