When anyone is selling an item, they usually want to sell it for the greatest profit possible. When consumer demand is high and there’s a limited supply of that item, like with the current housing market, sellers have flexibility in price setting to maximize their profits. If your listing clients are unsure whether now is the right time to join the market, here are three reasons that reaffirm why now’s the time to list:
1. Demand Is Very Strong This Winter
A recent article in Inman News explains:
“Spring, the hottest time of year for homebuyers and sellers, has started early, according to economists. . . . ‘Home shopping season appears to already be in full swing!’”
But Inman’s writers aren’t the only ones noting buyers are already out in full force. That claim is backed up with data released last week by ShowingTime. The ShowingTime Showing Index tracks the average number of monthly buyer showings on active residential properties, which is a highly reliable leading indicator of current and future trends for buyer demand. The latest index reveals this December was the most active December in five years (see graph below):
As the data indicates, buyers are very active this winter. Last December saw even more showings than December of 2020, which was already a stronger-than-usual month.
2. Housing Supply Is Extremely Low
Each month, realtor.com releases data on the number of active residential real estate listings, and their most recent report reveals the latest monthly number is the lowest we’ve seen in January over the last five years (see graph below):
This deficit of inventory causes prices to rise, as more offers come in at or above listing price.
3. Despite Supply at a Historic Low, Home Sales Are at a 15-Year High
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), existing-home sales totaled 6.12 million in 2021 – the highest annual level since 2006. This means the market is hot and homeowners are in a great place to sell while sales are so strong.
NAR also reports available listings by calculating the current months’ supply of inventory. The current 1.8-months’ supply is the lowest ever reported. Below, we can see the December numbers over the last five years (see graph below):
The ratio of buyers to sellers favors homeowners right now to a greater degree than at any other time in history. Buyer demand is high, and supply is low, presenting your sellers with an incredibly lucrative opportunity.
The aforementioned statistics and graphics can be leveraged to appeal to your sellers and illustrate why the current market is a hot one for them to become involved with. Meet with them today and make a case for why you’re the best agent to list for them.