In today’s housing market it seems that it is more difficult than ever to find a house to buy. Before the health crisis hit us last year, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers were aiming to take advantage of historically low mortgage rates and buy a home, home inventory fell further. Experts see this as the biggest challenge facing what would be a strong market, as buyers continue to compete for homes. As explained Danielle Hale, Chief Economist of realtor.com:
“With the active buyers in the market and participation laggard vendors, homes are selling quickly and n u total number available for sale continues to fall . In general, in January , the number of homes for sale fell to or below 600,000 ”.
Every month, realtor.com publishes new data showing the year-over-year change in inventory for existing homes for sale. As you can see in the following map, at the national level, the inventory is 42.6% lower than at this time last year:
Does this mean that no houses are being put on the market for sale?
Not exactly, while there are fewer existing homes for sale right now, simply many of the homes are selling faster than can be counted in inventory. The market is so competitive! It’s like when everyone was trying to find toilet paper to buy last spring and it was disappearing off the shelves faster than it could be stocked in stores. That’s what’s happening in the housing market: Homes are going up for sale, but not at a rate that can keep up with strong demand from competitive buyers.
In the same report from realtor.com , Hale explains:
“ Time to market was 10 days faster than last year , which means buyers still have to make decisions quickly to be successful. Today’s buyers have many tools to help them do so, including the ability to be notified as soon as homes that meet their search criteria hit the market. By tailoring the search and notifications for homes that are a solid match, buyers can act quickly and compete successfully in this faster-paced housing market. ”
The good news for homeowners
The health crisis has been one of the main reasons potential sellers have waited so long, but as vaccines become more available, homeowners will begin to move. Ali Wolf, Principal Economist at Zonda confirms :
“Some people will be comfortable putting their home up for sale during the first half of 2021. Others will want to wait until vaccines are widely distributed.”
With more homeowners preparing to sell later this year, putting your home on the market as soon as possible is the best way to make sure your home shines more than the rest.
When you’re ready to sell your home, you probably want it to sell as quickly as possible, at the best price, and with little or no hassle. If you are looking for these terms of sale, you will find them on the current market. When demand is high and inventory is low, sellers have the opportunity to create optimal terms and timelines for the sale, making now an exceptional time to move.
Today’s housing market is a huge win for sellers, but these conditions won’t last forever. If you are in a position to sell your home now, you may not want to wait for your neighbors to do the same. We will communicate so that you can get advice on how to sell your home safely so that you can benefit from the current high demand and low inventory.