Deciding when the right time is to sell your home can be stressful. You may need to consider several personal and financial factors, before listing your home for sale. Home supply is one of the key factors to consider when planning to sell your house.
It’s no secret the market has been shifting constantly since 2020 and will continue to do so. The Feds raising rates in late 2022 resulted in buyers pausing their home search and the market largely stalling. As a result, we were left with a cooled market with little activity and even more notably, no inventory. Queue the current issue—the lack of homes available with buyers back out in the market!
Many sellers have been reluctant to list due to the changing real estate climate. This has led to historically low property supply, especially in the more affordable, mid-price range of homes.
One of the BEST Times to List Your Home is When Inventory is Low. Why?
Historically, there is an influx of people that list their homes come Springtime. The holidays are over, it’s a new year, and often the shift in weather motivates people to list their homes. This is also one of the peak times that buyers get out there to start their home search. There’s just one problem—the inventory isn’t there for buyers. So, what does that mean for sellers?
Now is the prime time to list! The shift in the market, coupled with everything the economy brought, left a far fewer number of people buying and selling. But with the recent dip in mortgage rates, buyers are leaving the sidelines and ramping back up their home searches. The housing demand hasn’t caught up to buyer demand, leaving a unique position for sellers to maximize on selling.
Benefits of Listing When Inventory is Low
Low housing supply is a huge deal if you want to time your home sale perfectly. Check out the top 4 reasons why the current low home inventory is the perfect excuse to sell your house.
1). Higher Property Prices
Bidding wars tend to become more common and intense when the demand for homes is higher than the supply. This automatically drives up home prices. The increased demand and low supply also mean that you will likely sell your home faster than if the supply was high. You can use this to your bargaining advantage to get a sweet deal on your sale.
2). Multiple Offers and Bidding Wars
As we saw in 2021 and 2022, when demand is high and supply is low, people will do anything to secure a home. We are already seeing bidding wars consistently taking place in 2023. With so few options, we are seeing contingencies being waved, prices being escalated, and multiple offer scenarios taking place for buyers to secure homes.
3). Home Values Holding Strong
One benefit of selling now is increasing the likelihood of getting top dollar for your home. When you sell your home when inventory is higher, you hold less power as a seller and often will have to negotiate or lower the price to move your home. In a market with lower inventory, it is far less likely that sellers will have to come down on price, with multiple buyers looking at and trying to purchase the home.
Capitalize on This Market and Sell Your Home
Low housing inventory can be your biggest advantage if you want to sell your house. As we move further into Spring and Summer months, inventory will continue to increase leaving your home on the market with more and more competition. Capitalize on this unique opportunity to move your home quickly and for top dollar! It’s important to remember that the market is always shifting and with the right mindset and a little bit of preparation, you can navigate these changes and achieve your real estate goals. If you have questions, reach out, I’m here to help!