Why Wait to List Your House for Sale
Many industries have been devastated by the economic shutdown caused by the COVID-19 virus. Real estate is not one of them.
Mark Fleming, Chief Economist for First American, just reported:
“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”
Buyer demand is still strong heading into the fall. ShowingTime, which tracks the average number of buyer showings on residential properties, just announced that buyer showings are up 61.9% compared to the same time last year. They went on to say:
“Normally, real estate activity begins to slow down in the late summer, but this year it peaked in July, August and into September.”
There Is One Big Challenge
Purchaser demand is so high, the market is running out of available homes for sale. Just last week, realtor.com reported:
“Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory.”
The National Association of Realtors (NAR) revealed that, while home sales are skyrocketing, the inventory of existing homes for sale is dropping dramatically. Below is a graph of existing inventory (September numbers are not yet available):Homebuilders are increasing construction, but they cannot keep up with the high demand. Bill McBride, founder of the Calculated Risk blog, in discussing inventory of newly constructed houses, notes:
“The months of supply decreased to 3.3 months…This is the all-time record low months of supply.”
What does this mean for sellers?
Anyone thinking of putting their home on the market should not wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s exactly the situation in the real estate market today.
Next year, when the pandemic is hopefully behind us, there will be many more properties coming to the market. Don’t wait for that increase in competition in your neighborhood. Now is the time to sell.
Let’s connect today to get your house on the market at this optimal time to sell.
The information contained, and the opinions expressed in this article are not intended to be construed as investment advice. Rafael Jarauta, Rafael Jarauta, PA or RealtyWonders.com, does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Rafael Jarauta, Rafael Jarauta, PA or RealtyWonders.com will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
La información contenida y opiniones expresadas en este artículo no tienen la intención de ser interpretadas como asesoramiento en materia de inversión. Rafael Jarauta, Rafael Jarauta PA o RealtyWonders.com no tienen ni garantías de la información o integridad de la información u opiniones aquí contenidas. Usted debe siempre realizar su propia investigación y su debida diligencia y obtener asesoramiento profesional antes de hacer o tomar una decisión de inversión. Rafael Jarauta, Rafael Jarauta PA o RealtyWonders.com no son ni seran responsables por ningun dano o perjuicio relacionado con la información u opiniones contenidas en este sitio web