Should You Move This Spring?
Many people are debating on selling their house this spring. This is traditionally a strong time in real estate, as most homes are listed from April to July in our market. It seems like everyone is talking about home prices today, as homes are selling in as little as hours with multiple offers. But many people do not understand the real reason why sellers are having optimal conditions. For those wondering if you should move this spring, let us look at the data to show why it might be favorable.
Favorable Conditions For Sellers
In the market today, and really the last 2-3 years, there are significantly more buyers than there are sellers. In fact, this trend has gotten so strong that there is a record low number of homes for sale. Even with the record level of homes currently listed on the market, there are still new and existing home sales numbers at all time highs. This can work because homes are bought on a weekend, after being listed for only 3 days. Inventory never recovers when the homes are not on the market for long enough to impact the overall supply.
According to the National Association of Realtors, there is a vast difference between buyer and seller traffic. This shows the difference between the demand to buy a home, and the urge to sell a home. Most people now are not looking to sell because the increase in borrowing costs. As mortgage rates continue to rise, look for supply to be constrained even more, even as buyers remain eager. Remember, buyers can lock in their interest rates so it does allow some delay in rate shock. Here is a diagram showing buyer and seller traffic across the states.
Sellers Should Move This Spring
For sellers, you have an incredible advantage when it comes to whether or not you should sell your home. Because of help from the buyers and their demand, there is a good chance buyers will compete for your home. Remember, the average home was sold in 18 days last year, and received close to 5 offers. This is because there are so many eyes looking at so little homes. This is one of the strongest benefits to sellers, and why we are in a seller’s market.
But Buyers… Should You Move This Spring?
For those who are looking to buy a house, you may be in for a different battle. While we have not seen as many bidding wars as the past, we are seeing multiple people put offers on the same house. Nowadays, there is no “escalation clauses,” there is just “best-and-final offers.” Agents are having the time of their lives trying to negotiate best deals and contingencies for their clients. That does not even mean that someone else will not come in and send that dreaded all cash offer that takes your offer off the table.
Buying a home right now has never been harder. In fact, a survey from potential or recent home buyers shows that buyer sentiment is at-or-near all-time lows. Buying a home is still a great step in building wealth, but many people are becoming discourage and think they cannot become an owner. For these buyers, I will leave you with a quote from Danielle Hale, Chief Economist at Realtor.com,
“The limited number of homes for sale is a lesson in perspective. This same stat that frustrates would-be homebuyers also means that today’s home sellers enjoy more limited competition than last year’s home sellers.”