As December rolls around, some would-be home sellers assume they’ve missed the opportunity to sell their home during the winter.
“I guess I’ll have to wait to sell my home until the spring,” becomes the mantra for many.
Yet does that really make sense? We know that the price of any item (including residential real estate) is determined by “supply and demand.” If many people are looking to buy an item and the supply of that item is limited, the price of that item increases. Here’s the biggest reason to sell your home now:
According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to the national housing inventory at the beginning of 2016:
In our local market, statistics show that the inventory is typically at its lowest at the end of the year and at the beginning of the year — typically between November and February.
Often over the holidays and beyond into January, there are a number of motivated buyers seeking new homes and little inventory to choose from. This year is no exception. While the overall inventory in our local Multiple Listing Service (MLS) is slightly above a 3 month supply of homes, some cities and neighborhoods have an even lower supply. Long Beach, for example, has a 2 month supply of single family homes for sale, and Lakewood is at just a 1.6 month supply, according to the latest MLS figures available.
As a result, homes are selling quite briskly. In Lakewood, the median time on market for homes last month was a median of 19 days — down 60% from the same time a year ago. In Long Beach, the median days on market last month was 30, which is 26.8% below the same time last year.
Meanwhile, buyer demand has increased, in part due to an increase in interest rates since the election. While rates are still low from a historical standpoint, they are are significantly higher than they were earlier this year. With the fed voting to increase the interest rate this week and indicating that the plan is to do so three times in 2017, some people who’ve been sitting on the fence have decided it’s time to jump into the market. They know that as rates rise, their monthly payment goes up, even if home prices stayed the same.
Most economists are projecting that prices will rise in modestly in 2017, not stay the same. The California Association of Realtors is predicting that home prices will go up 3.6% in 2017.
If you’re thinking of making a move and wondering whether you should do so now or wait, give us a call at 562.896.2456 and we’d be happy to help you evaluate your individual situation. Interested in finding out what your current home is worth? Fill out the form below and we’ll be happy to provide you with a Comparative Market Analysis of your home.