Seller’s Market In Real Estate Today
In contradiction to yesterday’s article, now is the best time to sell in real estate. While it has never been a harder time to buy, it has never been an easier time for sellers. With record low inventory, record low time-on-market, and record high demand, sellers continue to rule this marker. The seller’s market in real estate we have seen over the past two years has been one for the record books. For those wanting to sell their home, there has probably never been a better time to make it happen.
According to recent data, over 75% of consumers believe that now is a great time to sell. This is pretty much the other end of the spectrum in terms of buyers, as there has never been a worse time to buy according to some. Here is why, according to the Home Purchase Sentiment Index, the seller’s market in real estate is still in full force.
Best Time To Sell
Over the past few years, it is clear to tell a few things. One of the most noteworthy aspects of the real estate market recently is that consumers are optimistic. According to research from Fannie Mae, there has never been a better time to sell in the past few years. In fact, homeowners who are looking to sell their homes continue to think the process is favorable. Ever since the drop in sentiment from the beginning of the pandemic, the sentiment for sellers has only increased. After touching decade lows, sentiment has now reached a record high in terms of selling. When there was widespread uncertainty about the pandemic, confidence in all assets was low. However, as we realized the government and Federal Reserve would not let us fail, sentiment began to increase.
The good news is that sentiment has flipped 180 degrees and now has never been stronger. Even before the pandemic, seller’s thoughts were that it was a good time to sell. However, because of the dramatic increases in home prices and inflation, sellers have never thought it was a better time to sell. This is largely due to the fact that equity in homes has skyrocketed, going hand-in-hand with increasing real estate prices. According to the respondents of the Fannie Mae survey, it is an even better time to sell today than before the pandemic was ever end heard of. This goes to show that good things come to those who wait.
Optimism In A Seller’s Market In Real Estate
From equity gains that were mentioned before, to record-low housing supply, and record high buyer demand, homeowners have the most to gain when selling in 2022. Experts predict that real estate prices will once again increase in 2022, as inflation, supply, demand, and mortgage rates all look to increase as well. In today’s seller’s market, there has never been more qualified buyers. With the amount of homes for sale in Louisville, Kentucky reaching 0.61, or close to half a month worth of homes at the current rate, supply is not being met. While increasing mortgage rates will begin to slow the market and price out some lower-end buyers, do not be fooled. Real estate looks to remain strong in 2022 and that has not changed in the eyes of experts.
According to the National Association of Realtors (NAR), the national average for inventory is 1.8 months. With our local market showcasing a third of that supply, real estate markets will remain tight. Even as more sellers begin to list in the summer and warmer months, inventory looks to remain a problem. One bit of information from NAR that we will leave you with is this:
“The average home for sale is receiving 3.8 offers today, up from 3.3 offers just one year ago.”