If you had clients that put a pause on their home search because they weren’t sure where they would go once their home was sold, it might be a good time to get them back into the market. That’s because today’s market is undergoing a shift, and the supply of homes for sale is increasing as a result. That means you may have a better chance of finding them a home that will meet their needs. Here are some talking points to bring up with your clients.
Buying an Existing Home Can Give You That Lived-in Charm
According to the National Association of Realtors (NAR), the supply of existing homes (a home that’s been previously owned) has steadily increased since the beginning of the year. The graph below indicates inventory levels are rising, and that’s largely due to more homes coming onto the market and the pace of sales slowing:
As the graph shows, if you’re looking for a home with lived-in charm, supply is rising, and that’s great news for you.
Danielle Hale, Chief Economist for realtor.com, gives insight into why more homeowners are listing their homes and adding to the growing supply of existing homes today:
“Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much needed options. We’ve seen more homes come up for sale this year compared to last year . . .”
There are several benefits to buying an existing home. Many buyers want to purchase a home with history, and the character of older houses is hard to reproduce. Existing homes can often be part of an established neighborhood, featuring mature landscaping that can give additional privacy and boost curb appeal.
Plus, timing can be a consideration as well. With an existing home, moves can be based on the timeline agreed to with the sellers, rather than building a new home and waiting for construction to finish. This is something to keep in mind, especially if your buyers need to move sooner rather than later.
Just remember, while more inventory is becoming available, supply is still low overall. That means you’ll still have to prepare your client for a fast-moving market.
New builds may seem enticing, but wait times can be a dealbreaker
Census data shows there’s an increasing number of new homes available for sale. It includes homes that are under construction, soon to be completed, and fully built. As the graph below highlights, the supply of new homes for sale has also grown this year:
There are a few of instant advantages to buying a new home: client’s have a lot of customization options, everything inside and out is brand new, and most likely, lower maintenance costs, especially with that warranty.
It is important to let our clients know, however, that purchasing a new home could mean waiting a considerable amount of time before they can move. Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy at the National Association of Home Builders (NAHB), explains:
“New single-family home inventory remained elevated at a 7.7 months’ supply. . . However, only 8.3% of new home inventory is completed and ready to occupy. The remaining have not started construction (25.9%) or are currently under construction.”
That’s an important factor when making a decision like this, and one you should discuss with your client. Help them think through all the pros and cons of both new and existing homes, and help them arrive at the best decision.
With the supply of homes for sale rising, clients are starting to have more options for their next home, no matter what their preferences are. It is the perfect time to focus on building up that buyer pool, or going back and reconnecting with a past client.