Is It A Good Time?

By
Real Estate Agent with Keller Williams Realty Evolution - Topsfield, MA 92593-B

People always wonder whether it's the right time to place their home(s) on the active market. I guess it would depend on your reason for considering that option. There are many reasons for selling. Job relocation, avoid foreclosure, downsize, upgrade, end of relationship, death, and so on. In my mind, whatever the reason you decide, it is the right time.

BUT, in this market of low inventory, high demand, and low-interest rates it may be easier to sell your home than buying another. Take that into consideration and be prepared to compete. 

 

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

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

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 | Keeping Current MattersThankfully, 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, reach out to a local real estate professional today. It’s a great time to move while demand for homes to buy is extremely high.

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (18)

Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Doug - "timing" remains an age-old topic of discussion in real estate.  There are those who "do" and then there are those who "wonder"(or otherwise don't act).  Each group seems to exist in every market.  

Jul 22, 2020 07:13 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Whenever it comes to action there are always some who do, some who don't and others that wonder whether they should or not Michael Jacobs AND I guess I've simply repeated your answer...lol

Jul 22, 2020 07:18 AM
Beth and Richard Witt
Long Island Cash Home Buyer - Center Moriches, NY
Long Island Cash Home Buyer 516-330-6940

Valuable information for all ... regardless of whether they are thinking of selling or buying... 

Jul 22, 2020 09:04 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Doug,

Timing is a personal thing.  When one is ready they are ready, you cannot make someone ready.  A

Jul 22, 2020 09:14 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Doug Dawes - I am sure that there are those who won't list because they won't know if they can find something to buy.

Jul 22, 2020 10:24 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, great post, and we do get that question often, but if it is right for THEM, it is right.   

Jul 22, 2020 10:54 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Beth and Richard Witt 

Information is what we dispense to aid sellers and buyers in their decision process

Jul 22, 2020 02:44 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

That it is, Ron and Alexandra Seigel 

You can lead a horse to water but you can't make them drink

Jul 22, 2020 02:47 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hey Grant Schneider That is very true in this market. I've heard it a couple of times

Jul 22, 2020 02:48 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

We are information merchants as well as the people that guide a buyer and/or those who make the decision to enter the active market Joan Cox 

Jul 22, 2020 02:55 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Doug, you are right about bottom line,  There are not enough homes on the market

 

Jul 25, 2020 10:14 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Continuing reports of agents disregarding showing guidelines are discouraging. Listing agents are challenged to maintain the needed control to protect the home occupants.

Jul 27, 2020 09:56 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Will Hamm Eventually this housing shortage will subside

Jul 28, 2020 07:14 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

It is disturbing Roy Kelley I don't know why some agents cannot follow simple guidelines

Jul 28, 2020 07:15 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Doug what a great post and here in my market I am very cautious, if you do not sign the PEAD, and provide Proof of Funds and Pre-Approval you do not get to see my Condo listing...simple as that, Endre

Jul 28, 2020 09:08 PM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Endre Barath, Jr. All buyers must comply and they must learn that. It's a tight market and people cannot play games

Jul 29, 2020 12:27 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good mornign Doug. They say timing is everything. My timing is not good for catching your posts and commenting. Got to do better. Enjoy your day!

Aug 01, 2020 06:05 AM
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I've been a bit erratic these days Wayne Martin BUT Thank you for stopping by and commenting 

Aug 02, 2020 08:50 PM