We’ve been getting asked this question a lot lately and wanted to provide some insight based on current market conditions.
In short, 2018 is proving to be a great year to sell your house. In this article, we will review the various reasons why it’s a great time but if you are short on time and are unable to read the full article, here’s a quick list:
- Low inventory, high demand
- Home buyers are shopping earlier in the year to beat out the competition
- Interest rates are low right now
- Homes are selling faster than they have in the past 6 years
Now let’s explore the facts.
Low inventory, high demand.
The current trend in the housing market right now is – a lot of home buyers but not enough home sellers.
If you are thinking of selling but need the extra push, this should be the main factor that puts the wheels in motion.
Selling a property in a market where inventory is low has been proven to increase value while decreasing the amount of time the house sits on the market before it sells. It’s the simple law of supply and demand. This dynamic creates a classic “Seller’s Market”.
High demand doesn’t excuse the need to make sure your home is in tip top shape for home buyers. Make sure you consult your real estate agent on what updates/repairs are necessary to move forward with a successful home sale.
Home buyers are shopping earlier in the year to beat the competition.
Eager homebuyers have been frustrated over the last few years, experiencing low inventory in most major markets, this is pushing them to start home shopping earlier in the year to try to beat out the competition and get first dibs on desired properties.
AdvantageU® Home Sellers’ Resource has seen a huge spike in website visits, and it’s only increasing as the months go on – this metric tells us home buyers are serious about their search and have high intent to find their next home.
And while the last few years have proven beneficial for sellers, seeing many homes sell for asking price or above, it won’t last forever. We’ve been hearing chatter that home builders will begin looking to construct additional entry-level homes to take advantage of the high demand.
Meaning if you wait too long to put your home on the market, you may end up competing with new builds, which could potentially lower home values, given that the supply of available homes will increase.
Interest rates are low right now.
For both the buyer of your home and your next home purchase, low-interest rates can help make a transaction possible. As of April 25th, 2018, the average interest rate for a 30-year fixed-rate mortgage was 4.73 percent, according to Bankrate.com. Mortgage rate averages are trending slightly up as the months go on, so it might be smart to take advantage of selling your home earlier rather than later.
While increasing interest rates are a sign of a good economy, they can reduce the possibility of some buyers being able to purchase a home. Low rates (like the ones right now) typically influence potential homebuyers to get moving sooner rather than later.
Homes are selling faster than they have in the past 6 years.
According to Redfin, the median number of days a home stays on the market is at it’s lowest for the current time period (when you compare data from the last 6 years).
In the chart below, notice that for the month of March 2018, the median days on the market is only 43. That is a dramatic drop compared to all previous years shown.
Median Days on the Market by Year:
- 2012: 85 days
- 2013: 67 days
- 2014: 67 days
- 2015: 67 days
- 2016: 61 days
- 2017: 51 days
- 2018: 43 days
The statistics are telling us that homes are selling more quickly and earlier in the year. Which means you should get in there while the market is hot!
If you are working with an experienced real estate agent, like those certified by AdvantageU® Home Sellers’ Resource, he/she can help advise you on the market conditions in your specific area. It is important to really understand the data, as trends change depending on where you live. But, that’s what the experts are for!