“In the case of homeowners who are thinking about selling, there may never be a better time than right now”
If you’re thinking about selling your house in 2022, you truly have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope for strong demand for the item coupled with a limited supply. That maximizes your leverage when you’re negotiating the sale. Home sellers are in that exact situation right now. Here’s why.
Demand Is Very Strong
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021. This was the largest number of home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:
“Sales for the entire year finished strong, reaching the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”
Demand isn’t expected to weaken this year, either. In addition, the Mortgage Finance Forecast, published last week by the Mortgage Bankers’ Association (MBA), calls for existing-home sales to reach 6.4 million homes this year.
Supply Is Very Limited
The same sales report from NAR also reveals the months’ supply of inventory just hit the lowest number of the century. It notes:
“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”
The reality is, inventory decreases every year in December. That’s just how the typical seasonal trend goes in real estate. However, the following graph emphasizes how this December was lower than any other December going all the way back to 1999.
Right Now, Sellers Have Maximum Leverage
As mentioned above, when there’s strong demand for an item and a limited supply of it available, the seller has maximum leverage in the negotiation. In the case of homeowners who are thinking about selling, there may never be a better time than right now. While demand is this high and inventory is this low, you’ll have leverage in all aspects of the sale of your house.
Today’s buyers know they need to be flexible negotiators that make very competitive offers, so here are a few areas that could tip in your favor when your house goes on the market:
- Competitive sales price
- Flexible closing date
- Potential for a leaseback to allow you more time to find a home
- Minimal offer contingencies
Bottom Line
If you’re thinking of selling your house this year, now is the optimal time to list it. Let’s connect to discuss how you can put your house on the market today.
To view original article, visit Keeping Current Matters.
If Your House’s Price Is Not Compelling, It’s Not Selling
Work with a local real estate agent who’s going to be honest with you about how you should price your house.
Why More People Are Buying Multi-Generational Homes Today
According to the latest data from NAR, cost savings are the main reason more people are choosing to live with family today.
When Is the Perfect Time To Move?
No matter when you buy, there’s always some benefit and some sort of trade-off – and that’s not a bad thing.
That’s just the reality of it.
One Homebuying Step You Don’t Want To Skip: Pre-Approval
A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.
The Truth About Credit Scores and Buying a Home
You don’t need perfect credit to buy a home, but your score can have an impact on your loan options and the terms you’re able to get.
What To Save for When Buying a Home
Planning ahead and understanding the costs you may encounter upfront can make buying a home less intimidating and allow you to take control of the process.