If you’re contemplating putting your home on the market, it’s crucial to understand the current dynamics of the real estate landscape you definitely want to seize the opportunity in today’s low inventory market. Presently, the number of homes available for sale is notably scarce. This scarcity is a result of fewer homeowners opting to list their properties compared to typical market conditions.
Taking a retrospective glance at April data since 2017, we observe a significant decline in home listings only during April 2020, marked by the onset of the pandemic, as depicted in the graph below. In a typical April, approximately 500,000 properties are introduced to the market.
Various factors contribute to this trend, yet one prominent aspect keeping inventory levels suppressed is the concept of “rate lock.” Many homeowners are hesitant to make a move when they enjoy a mortgage rate lower than what they might secure for their next property.
According to a recent survey conducted by Realtor.com, a substantial 56% of prospective sellers planning to make a move within the next year are holding off, anticipating a drop in mortgage rates.
While this cautious stance may suit some sellers, it presents a golden opportunity for those ready to act decisively. If your current home no longer aligns with your needs and aspirations, now is the time to make your move. Seizing this moment ensures your property stands out amidst the reduced competition. With fewer homes hitting the market, your listing garners heightened attention from potential buyers, potentially resulting in multiple offers, particularly if priced strategically.
Echoing this sentiment, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), emphasizes the historic lows in inventory levels and the resurgence of multiple offers on numerous properties.
For sellers poised to take action, there’s a unique advantage in entering the market ahead of the competition. By doing so, your property gains prominence and stands a greater chance of attracting multiple offers. To navigate this opportunity effectively, consider partnering with a seasoned real estate professional who can expertly position your home in the market. Don’t wait—capitalize on the current market dynamics to maximize your selling potential.
