Do you think it makes sense for you to sell your home now? The answer is yes, particularly when you look at how few houses are on the market.
You might have heard that the inventory is down, but you may need to realize how low it is or why it’s an added benefit when you plan to sell your home. The graph below from Calculated Risk will assist in understanding why:
As the graph illustrates, although housing inventory increased slightly over a week (shown by the blue bars), the supply remains low (indicated by the orange bars). Compared to a similar week in the previous year, inventory is down by around 10%, which was already deemed low at the time. However, going further backward, you’ll find the stock has dropped dramatically.
To see how far away from regular supply, we’ll compare it to 2019 (the most recent average year on this market). If you look at the same week this year compared to the comparable weeks in 2019, inventory is approximately 50% less. This means that there are half the homes available for sale that there would typically be.
The main conclusion? There needs to be a way to get there. Called an equilibrium market. The market is highly interested in your home since there aren’t enough homes. According to Lawrence Yun, Chief Economist at the National Association of Realtors(NAR), explains:
“There aren’t enough homes available for to be sold. The market is able to quickly absorb a double of inventory.”
If you’re planning to sell your home, take note that it’s about half the amount of inventory available that it would typically be in an average year. This means your home will be at the forefront when you list it, and you might get several offers and a speedy house sale.
Bottom Line
With the number of houses available for sale being about half the number you’d typically see in a typical season, be sure there’s a demand for your home. If you plan to sell your house, contact an agent in your area immediately to ensure your property can stand out from the crowd because inventory is low.
Agents Know the Local Area and Market
Your agent knows the newest communities and developments that could affect your choice. For instance, you’ll need to know if there were any plans to build a highway through the forest in the area of your dream backyard. Thinking about how your neighborhood and surrounding area could change before purchasing your first home is essential. Your agent can assist you in locating a community that matches your tastes, lifestyle, and future requirements.
Knowledge of Construction Quality and Builder Reputation
Agents also know to evaluate the construction quality and the builders’ credibility. Their experiences and knowledge of local builders enable them to provide insight into the track record of each builder as well as customer satisfaction and the construction methods. This information will assist you in avoiding any possible risks and allow you to make an informed choice when choosing a builder known for building quality homes.
Assistance with Modifications and Customization
A new construction’s primary benefit is the possibility of modifying your home’s design to your personal preferences. Your realtor will help you through the process and suggest changes to improve your house’s long-term value. Their experience will help you concentrate your budget on the areas that will bring you the most ROI in the future.
Understanding Builder Contracts and Negotiations
The construction contracts can be complicated and differ from standard contracts for buying a home. Your agent can assist you through these contracts and ensure you understand the conditions and terms. They’re also expert negotiators who will advocate for you and possibly negotiate more favorable deals, upgrades, or other incentives throughout the process.
Bottom Line
The expertise and guidance of an agent in your area can be crucial in transforming your idea of the perfect house into reality. Find a real estate agent in your neighborhood to ensure you are confident in purchasing your dream home.
The National Association of Realtors (NAR) is scheduled to announce its latest existing home sales (EHS) study on the morning of tomorrow. This monthly report gives information about the number of deals and price trends for homes previously owned by the NAR. In the coming release, it’s likely to say that home prices are declining. It could be confusing, especially if you have been following the story and reading about how home prices are at the bottom but have since recovered.
So, how come this report would say that the prices of homes are declining when other accounts claim they’re expected to rise? It depends on the methodology of each. NAR publishes the median price of home sales. However, other sources rely on the repeat sales price. This is how the two approaches differ.