The #1 Reason not to Wait to List Your Home for Sale
The #1 Reason Not to Wait to List Your House for Sale
Many industries have been devastated by the economic shutdown caused by the COVID-19 virus. However, Real Estate in our area has not been one of them. Connecticut has moved up into the number 3 spot for homes sales nationwide just behind San Francisco. A lot of the growth has been driven by New Yorkers leaving New York City in large numbers and moving into the suburbs of Fair Field county. We have seen our share of New Yorkers and Buyers from Boston coming into the Greater Hartford Market as well. Closed Sales in West Hartford were 25% higher this September when compared to last year. One of the biggest challenges in our market has been low inventory which is now running at 1.9 months’ supply in West Hartford. As of Oct 24, 2020, there are only 101 active single-family homes for sale in West Hartford. In previous years, we would have over 225 single family homes actively for sale. Now is a great time to List your home for sale. Low Inventory combined with historically low mortgage rates continues to push property values higher. There is no shortage of Buyers just homes to purchase. This has caused the percentage of list prices many sellers are receiving this year to go over asking prices. Driven by receiving multiple offers on their homes. Now home prices are running 2.3% above their asking prices. Last year the percentage spread between Asking price and Close price’s was running 2% under their asking price. We have not seen this kind of market energy since 2005-2007.
Mark Fleming, Chief Economist for First American, just reported:
“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”
Buyer demand is still strong heading into the fall. ShowingTime, which tracks the average number of buyer showings on residential properties, just announced that buyer showings are up 61.9% compared to the same time last year. They went on to say:
“Normally, real estate activity begins to slow down in the late summer, but this year it peaked in July, August and into September.”
There Is One Big Challenge
Purchaser demand is so high, the market is running out of available homes for sale. Just last week, realtor.com reported:
“Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory.”
The National Association of Realtors (NAR) revealed that, while home sales are skyrocketing, the inventory of existing homes for sale is dropping dramatically. Below is a graph of existing inventory (September numbers are not yet available):Homebuilders are increasing construction, but they cannot keep up with the high demand. Bill McBride, founder of the Calculated Risk blog, in discussing inventory of newly constructed houses, notes:
“The months of supply decreased to 3.3 months…This is the all-time record low months of supply.”
What does this mean for sellers?
Anyone thinking of putting their home on the market should not wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s exactly the situation in the real estate market today.
Next year, when the pandemic is hopefully behind us, there will be many more properties coming to the market. Don’t wait for that increase in competition in your neighborhood. Now is the time to sell.
Let’s connect today to get your house on the market at this optimal time to sell.