If you’ve been considering selling your home this spring, you are in luck. You may not need to wait at all!
Traditionally, spring is the season when many homebuyers begin searching for a home and sellers start thinking about putting their home on the market. However, the real estate market is moving very quickly right now, and putting your home on the market when the inventory is so low may benefit you. So instead of waiting to sell your home in the spring, take a look at the current trends to see whether acting now or waiting will work best for you. Shannon discusses more in the video below.
Consider the Numbers
In December 2020 in Long Beach, there was a 1.1 month supply of homes, according to the Multiple Listing Service. That means that if no additional homes came on the market, then there’d be no houses for sale in just a little over a month. That’s less than half the supply of homes this same time last year. Yet more homes are selling. In December 2020, 212 houses closed escrow, compared to 147 homes in December 2019.
Because low mortgage interest rates have increased buyer demand, there just aren’t enough homes for buyers. This is why this type of market is called a “seller’s market” and we’ve continued seeing bidding wars, even during the winter in the middle of a pandemic. As a result of the low inventory and high demand, the median time for “days on market” for a single-family home in Long Beach was just 9 days in December 2020.
We don’t know exactly how long the inventory will remain this critically low. However, sellers who act quickly can make sure they’re able to take advantage of having such a strong position. While some people may have concerns about selling during a pandemic, it’s important to note that there are safety protocols and digital marketing methods in place that help reduce risk while increasing a home’s exposure to potential buyers.
Here are some more reasons to consider making a move right now.
1. Mortgage Rates are Historically Low
Mortgage rates continued to sink all throughout 2020. While rates are expected to stay low in 2021, they probably won’t stay as low as they have been. Take the opportunity you have right now and capitalize on those rates. When it comes to selling your home, buying a new one is just as important, and low mortgage rates can help you buy your dream home.
2. Equity is Continuing to Rise
If you’ve ever considered moving up into a bigger house or a more desirable area, now is a great opportunity. According to CoreLogic, the average equity homeowners have gained since last year is $17,000! That is a huge amount of money and again, can give you the moving up the opportunity you’ve been waiting for, and help you move up.
3. Home Prices Are Also Continuing to Rise
Home prices are expected to continue rising. So if you are planning to sell and buy, the gap between what you’re selling and what you plan to buy may increase if you’re “moving up.” If you are able to buy before you sell, now is a great time to start shopping for a home. At the same time, you can begin planning the sale of your current home. This would allow you to buy a home at current prices, but possibly sell your home at a higher price. The more flexible you can be, the better.
4. Inventory is Low
We continue to find ourselves in a seller’s market. What does this mean? You as the seller are in the driver’s seat. There is a high demand for buying homes, but not enough people selling homes. This is leading to high competition and bidding wars. If you start planning now, you can be ready to sell as soon as the spring market comes around. You can get a head start on all the people who just start thinking about selling their home when spring rolls around.
5. “Traditional” Real Estate Seasons May Be Over
Historically, winter is the “slow” season and spring is the “busy” season in real estate. However, thanks to the rise of virtual real estate and the buying frenzy we saw last year, traditional real estate seasons may be over. This means you don’t need to wait until spring to sell. The best time for selling is always when there’s a seller’s market – and that’s right now!
Wondering if You Should Sell Your Home or Rent it Out? See what to consider in our blog post here.
Selling and Buying? Which Should You Do First? See all the factors to consider in our blog post here.
Ready to Sell Your Home Now?
The Shannon Jones Team wants to help! We can schedule a virtual consultation to discuss your current situation and the best plan of action for you. Since the market is so hot right now, it’s possible you won’t need any updates to your home before selling and your home can go on the market sooner than you think. We can give you expert advice on what you should do to earn top dollar, get pictures taken of your home, and have you ready to go! Fill out the form below to start planning and we look forward to speaking with you!