Over the past year and a half, real estate prices have continuously surprised even the smartest experts. With house prices climbing month to month, the market has never favored sellers more. In today’s seller’s market, homes of any condition are seeming to sell within days. Average time on the market has been decreased by 50-60% in some areas, like Middletown and Jeffersontown. With no end to the seller’s market in sight for the near term, now has never been a better time when it comes to selling your home.
Selling Your Home In Seller’s Markets
The statistics do not lie. According to the National Associations of Realtors, there still has never been a better time to sell your home. Not only have homeowner’s seen their equity and net worth rise, but they have also got the benefit of the seller’s market. Homebuyers are looking to upsize and for homes that fit their new work needs. Because of motivated buyers who are looking for something new, the housing demand has soared to record highs. Not only has demand soared, but supply is diminishing in all major real estate markets. With the supply of houses in Louisville, Kentucky reaching a low of less than one month worth of supply, seller’s have the upper hand.
Selling Your Home In Low Inventory Environments
With home inventories being lower year-over-year, being a home buyer, especially a first-time home buyer, has never been harder. While there are more qualified buyers in this market than before, house prices have continued to soar, making buying a house harder. Housing inventory being at record lows helps to benefit homeowners in this market. Low supply means that you have more people looking at your home than in other years. Homes that have been well taken care of and have great curb appeal are going to continue to stand out to new buyers. As a homeowner, if you have upgraded your home and taken care of it, there is a chance your home can sell in hours, not months.
Homes At Higher Prices
Since September of 2020, home prices are up double-digits across the nation. With home prices up on average of 13% year-over-year, home equity and wealth have risen. For owner’s over 12 months, their investment in a primary or secondary residence has paid off. Home prices soaring help sellers make their money back that was given up for closing costs and commissions. Home prices will continue to rise into the new year, meaning homeowners will continue to gain equity in their homes at alarming rates.
Selling Your Home Quickly With More Offers
Homes have been staying on the market for less and less time. Throughout the past year, we have seen homes sell in as little as a few hours. Some of these homes receive multiple offers on the first day, even in the first few hours. With the prevalence of Zillow and other home listing websites, homes are seen by thousands of people everyday. The average number of days on market for homes over the past year is just 17 days. Let that sink in. A few short years ago, homes were on the market for an average of 56 days. Whether this decrease is based on more qualified buyers or less inventory is up for debate. But one thing we are certain of is: homes are selling quickly.
With homes selling in as little as 2 and a half weeks on average, sellers are able to be in and out of the closing office within 2 months of listing their home. Seller’s are also the benefits of low inventory and more buyers than before. Because more people are looking at less homes, this often creates bidding wars for available properties. The increase in the escalation clause use in contracts is also related to less properties and more bidders. Homeowners are now receiving close to 4 offers for their homes. 3.7 offers in 17 days is often unheard of, until this year. Sellers are benefitting from being able to make a choice between offers. Having a choice allows sellers to choose the offer that works best for them.