Believe It Or Not, It Is Still The Seller Market!
Why Today's Low Housing Supply Favors Home Sellers
Are you thinking about selling your home but are concerned about the state of the housing market? Don't be! While the frenzy of a year ago has subsided, today's low supply of available homes means that conditions remain highly favorable for sellers.
According to the National Association of Realtors (NAR), the current housing supply is astonishingly low, with only a 2.6-month supply of homes for sale. To put this in context, a 'normal' or 'neutral' market usually necessitates a 6-month supply of homes. Buyers face stiff competition due to the scarcity of available homes, which drives up prices.
What Experts are saying
This is terrific news for sellers. Buyers are willing to make competitive offers and negotiate on your terms in a low-supply market. Multiple offers are becoming more common, with many properties attracting significant interest from serious, competitive buyers. As NAR's Chief Economist, Lawrence Yun, puts it:
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
The Rates are still High.
One significant factor is the persistent high mortgage interest rates. This situation leads to costlier mortgage payments, causing numerous potential buyers to wait to purchase. Despite these challenges, buyer interest and property prices continue to exhibit robustness in Los Angeles. Furthermore, with the Los Angeles housing inventory remaining strikingly low at a 2.6-month supply, as reported by NAR, the city predominantly favors sellers in the current market.
When does it make sense to wait to list
Interest rates are projected to decrease: This can lead to more buyers and bidding wars, thus more profit, potentially causing sellers to wait for better conditions.
Recent refinancing: If you've just refinanced your mortgage, selling might not be financially viable due to closing costs and fees.
Suboptimal home conditions: Postpone selling if your home requires significant repairs to get the best possible offer.
Lack of strategy: Consider postponing the sale if you're uncertain about your strategy and the subsequent steps following the transaction.
Maximizing your home sale
To increase the chances of selling your home at the best possible price, follow these steps: Find a reputable real estate agent who can guide you through the process and help you create a plan to present your home in the best light. If you are in the Los Angeles area, we can help. Make any necessary repairs to improve the property's first impression. Declutter the interior to create a more spacious feel and remove personal items. Consider investing in home staging to help potential buyers visualize the space and optimize its usage. Finally, enhance your home's curb appeal by upgrading landscaping and walkways or adding a fresh coat of paint to the front door.
Deciding when to sell your home is critical and requires thoughtful analysis. Consider your future objectives, financial requirements, and the existing market conditions. If you choose to list your home while the frenzy of the pandemic era has subsided, today's market still has serious, committed buyers actively searching for their perfect home. Seize this opportunity, and let us connect you with genuine prospects for a smooth and successful sale.