The Best Time to Sell Your Home is When Others Aren’t
If you are thinking of selling your home, you should be aware that there are currently a small number of homes for sale. That’s because fewer home sellers are putting their homes up for sale this season.
Looking back at every April since 2017, the only year in which there were fewer sellers listing homes was in April 2020, when the housing market closed due to the pandemic (shown in red in the graph below). In a more typical year, about 500,000 sellers put their homes up for sale in April. He had less than 400,000 sellers entering the market in April this year (see chart below).
There are a number of factors that contribute to this trend, but one of the reasons inventories remain low right now is that if the current mortgage rate on your current home is lower than the current mortgage rate you’ll get on your next home, some of the homeowners are reluctant to move. It’s called rate locking.
According to a recent Realtor.com survey, 56% of those planning to sell in the next 12 months said they were waiting for the price to drop.
While this wait-and-see approach works well for some sellers, it also creates an opportunity for more enthusiastic sellers to jump in.
If your current home no longer suits your needs and you’re ready to move, don’t miss this chance to stand out from the crowd. With fewer homes for sale, buyers have fewer options. Therefore, you should try to bring as much attention to your home as possible. Because of this, your home may receive multiple offers as buyers compete for a limited supply of homes, especially if you set the right price.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties.”