We’ve mentioned several times how challenging the current real estate market is for buyers. But what about sellers?
If it’s crossed your mind lately to consider selling your house, this could be the time to seriously make your move. It’s no secret that we’re in the middle of a sellers’ market, which makes for an ideal arena to list and sell.
Realistically-priced homes are moving quickly, many with multiple offers over their asking price. A recent ‘Existing Home Sales Report’ from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a two-month supply at the current sales pace.
But what does a two-month supply actually mean? The Months Supply of Inventory (MSI) is a calculation that quantifies the relationship between supply and demand in a housing market. If new listings stopped entering the market, how many months would it take to burn through all of the homes currently available for sale?
Historically, a six-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers. But a two-month supply of homes in the current market could mean that if no new listings enter the market, the supply of available homes for sale could dry up in just two months.
We already know the supply of houses for sale is critically low right now, making it difficult for buyers to find homes to purchase. Buyer competition is intense, offers are high, and bidding wars are taking place.
Of course, the obvious effect of this demand is an increase in home sale prices. If you’re the seller, you are in an ideal position to negotiate deals and terms. If you offer your house on the market while so few homes are available to buy, not only will it get a lot of attention, you will likely fetch a higher price than you would in a neutral market.
So does this mean the time is ripe for selling? Financially, the answer could be yes. Home prices are appreciating and you could benefit in a big way. While the supply of homes for sale isn’t keeping up with high buyer demand, this could be the optimal time to sell your house.
That said, there are personal factors to consider. Be mindful of rushing to sell without a realistic plan for what that means for you and your family. Where will you go once you sell? Are you downsizing and using your equity for buying power in your next home? Are you relocating to an area with a more stable real estate market? Remember, as hard as it was for buyers looking at your property, you could be in the same boat yourself if you need to buy something else.
Home prices are appreciating in today’s sellers’ market. By choosing to list your home now you can reap huge financial benefit from the tight market. The Gulf Living Group is ready to help you get your home ready for sale and advise you on pricing and negotiating strategies. Our team of agents and marketing professionals will make sure you get the best exposure for potential buyers. And once we’ve achieved the optimum selling result for you, we’re still on hand to help you purchase your next home in the St Pete Beach area or refer you to a great agent if your next move is further afield.