Today’s real estate market is not like the one we experienced during the previous two years. The conditions are different for both buyers and sellers. Given the changes in inventory, days on the market, and percentage of list price received, many home sellers are feeling reluctant to sell in today’s market. Here are some common questions that we are hearing from many potential home sellers today:
1. Should I Wait to Sell?
The truth is that many people who are thinking of selling their homes feel like they missed their golden opportunity. However, homes are still selling faster and for more money, than they would in a balanced market. We’re still in what’s considered a “seller’s market” meaning that there are not enough homes to meet buyer demand. In a neutral, balanced market there will be about 6 to 7 months supply of inventory. If you refer to the graph below, you can see that as of October 2022, there was a 1.9 month supply of inventory in Long Beach, California. Timing the market is incredibly difficult so instead of waiting to sell, we recommend teaming up with a Realtor that knows how to leverage the current market conditions.
2. Are Buyers Still Out There?
Yes, there are still home buyers actively looking for a new home and we have some good news for you. The home buyers that are in the market right now are more serious than the home buyers during the pandemic. Higher interest rates have actually filtered out many of the home buyers that were just browsing, leaving the buyers that are ready to make moves on owning a home. Statistically, the number of showings per listing is a good indicator of buyer demand. If you refer to the graph below you can see that in October 2022, the number of showings per listing is actually higher than it was pre-pandemic, though less than it was in early 2021.
3. Can I Afford My Next Home?
The answer to this question depends on how long you’ve been in your current home. If you’ve owned your home for more than a couple of years, you probably have enough equity to fuel the purchase of your next home. According to Investopedia, “Home equity in the United States is at an all-time record, with the average mortgage holder now owning $185,000 in accessible home equity”. If you’d like to find out how much equity you currently have, we can run a free equity check for you. Give us a call at 562.896.2456 for more information!
Preparing For Your Home Sale
If you do decide you want to sell your home after research and careful consideration, there are a few things you can do now to help you prepare for your sale. Here’s a quick list of things to do:
- Check your current home value.
- Consider your next move and where you’d like to live.
- Talk to a local real estate expert about improvements that could help increase your home value.
- Team up with a lender who can help you narrow down the timing of your sale and purchase.
- Work on implementing improvements around the house and boosting your curb appeal. For 10 Ways to Impress Potential Buyers, click here!
Thinking of selling your home in Long Beach or a surrounding community? Give us a call at 562.896.2456 with any questions you have about the process.