Demand Is Very Strong
According to the latestĀ Existing Home Sales ReportĀ from theĀ National Association of Realtors (NAR), 6.18 million homes were sold in 2021. This was the most significant number of home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:
āSales for the entire year finished strong, reachingĀ the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, itās likely that a portion of December buyers were intent on avoiding the inevitable rate increases.ā
Demand isnāt expected to weaken this year, either. In addition, theĀ Mortgage Finance Forecast, published last week by theĀ Mortgage Bankersā AssociationĀ (MBA), calls for existing-home sales to reach 6.4 million homes this year.
Supply Is Very Limited
The accurate sales report from NAR also reveals that the monthsā supply of inventory hit the lowest number of the century. It notes:
āTotal housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.ā
The reality is inventory decreases every year in December. Thatās just how the typical seasonal trend goes in real estate. However, the following graph emphasizes how this December was lower than any other December going back to 1999.
Right Now, Sellers Have Maximum Leverage
As mentioned above, when thereās strong demand for an item and a limited supply of it available, the seller has maximumĀ leverage in the negotiation. In the case of homeowners who are thinking about selling, there may never be a better time than right now. So while demand is this high andĀ inventoryĀ is this low, youāll have leverage in all aspects of the sale of your house.
Todayās buyers know they need to beĀ flexible negotiatorsĀ that make veryĀ competitive offers, so here are a few areas that could tip in your favor when your house goes on the market:
- Competitive sales price
- Flexible closing date
- Potential for a leaseback to allow you more time to find a home
- Minimal offer contingencies
Bottom Line
If youāre thinking of selling your house this year, now is the optimal time to list it. So letās connect to discuss putting your home on the market today.