I will be the first one to tell you that the best time to sell your home is when it’s the best time to sell your home. I say that because the decision on when to sell is usually based on a life event - growing family, shrinking family, job relocation, to be closer to family etc., and not because of market conditions. However, the vast majority of homeowners want to accomplish the same two things; sell for the highest possible price in the shortest amount of time. If you had been considering selling your home but decided to wait because of the pandemic, the market is calling your name this spring. Continue reading below or watch the following video to find out the 5 reasons why;

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1) There’s High Demand From Homebuyers

Buyer demand has been rising since the middle of last year and is very strong right now. According to ShowingTime, a showing scheduling service that tracks activity on residential listings, buyer showings are up 51.5% compared to this time last year. I can tell you firsthand that it is often difficult to schedule a showing on a newly listed property. Danill Cherkasskly, 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 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.”

You are in an advantageous spot as a seller when your house is positioned to get as much attention as possible from competitive buyers.

2) There Are Not Enough Homes For Sale

Buyer demand is currently so high that the market is running out of homes to sell. 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…”

In the local markets where my team operates - Frisco, TX, Prosper, TX, and Temecula, CA we have seen year over year inventory declines of between 75% and 85%. There is currently only a 2 week supply of homes available in Frisco and Prosper and just under a 1 month supply in Temecula. New construction isn’t making up the difference either, which I discussed in detail in last week’s blog post.

While the number of home sales is skyrocketing, the supply of existing homes for sale continues to drop dramatically. Homes are selling as soon as they hit the market. This imbalance between high demand and low supply gives sellers the advantage. A seller will always be able to negotiate the best deal when demand is high and supply is low, which is exactly what’s happening in the current real estate market.

3) Sellers Have Leverage in Today’s Market

There are obviously more people interested in buying than selling this spring, creating the ultimate sellers’ market. In a strong sellers’ market, homeowners have the upper hand in negotiations.

Virtually every home that is listed for sale right now is receiving multiple offers and experiencing a bidding war. All leverage is with the seller. Having the ball in your court means you are able to negotiate the best contract terms possible. The demand is there, which is why the current market has created a perfect opportunity to sell at favorable terms.

4) Selling Enables You to Unlock Your Homes Equity

As home prices have increased, homeowner equity has grown. According to CoreLogic, the average American gained $26,300 in home equity in 2020. More impressively, the current average equity homeowners of mortgaged homes is sitting on is $204,000.

This equity acts as a type of forced savings that grows during your time as a homeowner. This equity can be used towards bigger goals like moving up to your dream home.

Mark Fleming, Chief Economist at First American, explains:

“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.”

5) An Opportunity to Find a Home That Better Suits Your Needs

So much has changed in the past year, including the definition of home. Home has become so much more than the place we sleep. The extra time that has been spent at home has caused many to re-evaluate homeownership and what is most important to us in a home.

Home has become the place we work, go to school, watch movies, workout, vacation etc. Although elements of “normal” life are starting to return it is becoming clear that things will probably never go back to being exactly like they were before Covid. If your current home no longer meets your “home” needs, this spring could be the perfect opportunity to make a move.

Bottom Line

The current housing market definitely belongs to sellers. Although market conditions might be perfect to make a move, it doesn’t mean you don’t have questions. “What if I can’t find a replacement home?” “With so few homes for sale, how do I make sure I don’t end up homeless?” “How do I time selling and buying in this crazy market?”

These are common questions I hear all the time and the good news is there are several different options available. If you’d like to explore whether this is a good time to sell your home, Schedule a Call and let’s see which option best fits your unique circumstances.