Sellers Get Top Dollar In 2022
When selling a home, you always wonder if you are getting the most possible back from your investment. Especially in a strong demand environment where supply is low, sellers are looking to get the most they can. For real estate, the time to get the most back from your investment is now. For those who are debating on selling their home, the year to do so is now. Sellers are now getting the most back for their real estate assets. Here is a couple reasons as to why sellers get top dollar in 2022.
Demand Is Strong For Housing
According to Inman News,
“Spring, the hottest time of year for homebuyers and sellers, has started early, according to economists. . . . ‘Home shopping season appears to already be in full swing!’”
This article describes that buyer demand is still out there. In fact, there are many qualified buyers in the market still who have been waiting for a house. According to ShowingTime’s showing index, the number of buyers looking at homes on average per month is above pre-pandemic highs. This indicator has been a strong indicator of buyer demand for years, and it is showing record highs of showings per month. In fact, the showings in December of 2021 were at a record high per month. This goes to show that even while the market is slowing down, it is not because buyers are not out there.
As shown in the data, buyers are still extremely active and look to remain that way. In December 2o21, there was even higher demand than the years before. In fact, real estate typically slows down in December for seasonality, but that has not been the case recently. Real estate seasonality continues to be a fence topic, and does not have a place in today’s market.
Housing Supply Is Low
According to realtor.com releases real estate data. Some of the data that has been released recently covers the active listings. Because demand is so high, housing inventory is historically low. The number of active residential real estate listing revealed the lowest market supply since January than any January in years prior. While the graph only goes back to 2017, you are able to see that there is a third of the active listings available since then. Because buyer demand is so high, sellers are able to set the market prices. This has created the best time for sellers in a market that looks to continue this trend. With data continuing to come out showing that sellers control the market, it is a tough time to be a buyer.
According to the National Association of Realtors (NAR), existing home sales topped a 15-year high in 2021. This is the most sold homes in a year since 2006, a time that homes were sold in a fraudulent system. The biggest difference between now and then is that buyers are actually qualified and are not being sold on the dream of homeownership. The housing market was hot throughout 2021, and many experts are predicting that there will actually be more annualized home sales in 2022 than the previous year.
Sellers Get Top Dollar And Will Continue To
NAR also reported that we have hit a record low in housing supply. Active market listings sit at a 1.8 month supply. This means that throughout the nation, at this current demand, the housing inventory would be absorbed in less than 2 months.
“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.”
The buyer-to-seller ratio continues to favor sellers in this market. Sellers get top dollar in 2022 and that trend may last long past mortgage rate increases. It will take months for the housing market to balance out after Federal Reserve action.