It’s no shock that we have been living in a hot market recently. Even if you are not looking to sell your home anytime soon, the temptation arising from neighborhood sales and profits might have you a bit curious.
The seller’s market is still going strong, but when can we expect to see a shift in the buyer’s favor? You might want to act on your good fortune before it’s too late.
You are not alone
Over the past several years, inventory has been a bit lower than usual for homes for sale on the market. When that “For Sale” sign goes up, it was not uncommon for a bidding war to soon commence.
However, the number of homes for sale is starting to increase. Buyers still outweigh this number, but the trenches are getting a bit more competitive. In pricier markets, inventory is increasing at a faster rate than more affordable areas.
So, get a head start on the competition and list your home sooner rather than later.
In January 2012, the U.S. median home price was $154,700. Today, that figure has nearly doubled to $289,300.
Prices have since started to moderate, but combined with today’s mortgage rates, buyer demand is increasing. Even if you do not receive an offer above your asking price, you can still stand to make a pretty decent profit.
Ali Wolf, director of economic research at Meyers Research, says, “Sellers who list their homes earlier in the year tend to get a higher sales price, often above list, and shorter days on market”.
Where is the demand?
On average, buyers are shopping at a price point under $300k. This is the “below median” price.
If you are selling a home below median price, you may expect to see multiple offers, and maybe even one above asking price.
Mortgage rates at a new low
Experts initially predicted mortgage rates to rise at the end of the decade, but since 2019, rates for a 30-year fixed mortgage have been declining.
This is great news to buyers who will soon be knocking on your door. This is also good news for you as a seller considering there is a good chance you will be buying a new home after selling yours. You do not want to be stuck in a home that desperately needs to be sold if mortgage rates end up going through the roof.
Looking at previous year’s statistics, the age for first time home buyers averages at 30 years old. This means millennials are starting to flood the market.
Additionally, older millennials who already own a home may be looking to upgrade to something with more space for a growing family.
Whatever your motivations are for putting your house on the market, do not miss up on a great opportunity to turn a handsome profit.