Now May be the Right Time to Sell, Why?

Dated: July 20 2020

Views: 398

Thinking of Selling Your House? Now Maybe the Right Time

Thinking of Selling Your House? Now May be the Right Time | MyKCM

Inventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for homes to purchase than there are sellers selling them, so the scale is tipped in favor of the sellers.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), total housing inventory is down 18.8% from one year ago. Inventory is well below what was available last year, and the houses that do come to the market are selling very quickly.

Sam Khater, Chief Economist at Freddie Mac notes:

“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage.”

Why is inventory so low?

There are many reasons why it’s hard to find a home to buy today, stemming from an undersupply of newly constructed homes to sellers pressing pause on their moving plans due to the current health pandemic. One of the key factors making it even more challenging, however, is the amount of time current homeowners are staying in their homes. There has truly been a fundamental shift in the market that started about 10 years ago: people are staying put longer, and it’s contributing to the shortage of houses for sale.

In the 2019 Profile of Home Buyers and Sellers, NAR explained:

“In 2019, the median tenure for sellers was 10 years…After 2008, the median tenure in the home began to increase by one year each year. By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years.”

As shown in the graph below, historical data indicates that staying in a home for 5-7 years used to be the norm, until the housing bubble burst. Since 2010, that length of time has trended upward, toward 9-10 years, largely due to homeowners aiming to recoup their equity:Thinking of Selling Your House? Now May be the Right Time | MyKCMThankfully, with the strength the market has gained over the last 10 years, today’s homeowners are in a much better equity position. Now is a fantastic time for homeowners who are ready to make a move to break the 10-year trend and sell their houses, especially while buyer demand is so high and inventory is so low. It’s a prime time to sell.

In addition, with today’s historically low interest rates, there’s an opportunity for sellers to maintain a low monthly payment while getting more house for their money. Think: move-up opportunity, more square footage, or finding the features they’re really looking for rather than doing costly renovations. With more new homes poised to enter the market this year, homeowners ready to make a move may have a golden opportunity to do so right now.

Bottom Line

There are simply not enough houses for sale today. If you’re ready to leverage your equity and sell your house, let’s connect today. It’s a great time to move while demand for homes to buy is extremely high.

Blog author image

Amy Lilly

#ALilly2sell4u Being a proud 7th generation Texan, Amy was born and raised in the Tarrant/Johnson County area and now settled in Crowley for over 20 years. She with her husband, Billy have one son, Ch....

Latest Blog Posts

Great Ways To Use Your Tax Refund If You Want To Buy a Home

Ways To Use Your Tax Refund If You Want To Buy a HomeHave you been saving up to buy a home this year? If so, you know there are a number of expenses involved – from your down payment

Read More

Los constructores están construyendo casas más pequeñas

Los constructores están construyendo casas más pequeñasNo hay discusión, la asequibilidad sigue siendo restringida. Y si está tratando de comprar

Read More

Builders Are Building Smaller Homes Today

Builders Are Building Smaller HomesThere’s no arguing it, affordability is still tight. And if you’re trying to buy a home, that may mean you need to look at smaller

Read More

Coming Soon in Wyndsor Estates in Richardson

That sparkling pool in the expansive backyard you see above is no mirage...it is a true Oasis!  You'll find it located in Richardson's Wyndsor Estates and it comes with a lovely 2,555 sq ft, 4

Read More