According to the most recent Realtors Confidence Index Survey, which is published by the National Association of REALTORS®, we are currently in the ultimate sellers’ market.
Demand is strong and buyers are actively looking for homes to purchase.
This is NOT “new news” to most Americans. So, why is NOW the best time to sell?
According to Danielle Hale, Chief Economist at realtor.com, “For most sellers, listing sooner rather than later could really pay off with less competition from other sellers and potentially a higher sales price. They’ll also avoid some big unknowns lurking later in the year, namely another possible surge in COVID cases, rising interest rates, and the potential for more sellers to enter the market.”
Thankfully for Buyers, more homes are being offered for sale. To follow is a graph showing the increase of the number of homes being placed on the market from January to April:
As the graph depicts, more and more Sellers are deciding to enter the marketplace.
So why are more Sellers entering the marketplace?
The reasons are as follows:
As vaccine rollouts progress and we continue to see the economy recover, more houses will come to the market.
Homeowners ending their forbearance period are now entering the market.
Interest rates are rising. Freddie Mac states the following forecast:
“We forecast that mortgage rates will continue to rise through the end of the year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
Home price appreciation rates are lessening. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®:
“With more inventory and some easing in demand, home prices are expected to shift to mid-single-digit appreciation by the fourth quarter and in 2022.”
As more Sellers enter the marketplace, there will be more home-buying opportunities which means more price competition for Sellers.
This will be a welcome reprieve for Buyers who have been experiencing frustration in the marketplace. From everything that I am reading, prices are NOT going to rapidly drop; it will be an “ease” of dropping, so this is NOT the time for panic. However, it is time to make well-thought-out, prudent decisions so that you are able to obtain the highest price possible for the sale of your house.
If you have any questions about the marketplace, please do not hesitate to contact me. I am ALWAYS here to help.
Thank you for being our lifelong client and for all of your referrals. I am truly grateful!
Have a Heavenly Day!®
Angel Feichko, Principal Broker, ABR®, ASP, CDPE, CHMS, CNE®, CRS, DRS™, GRI, SRS
Bachelor Degree, Business Administration/Marketing
Sold By An Angel Real Estate®