Why Right Now May Be The Best Time To Sell Your Home

The real estate market had an incredible bounce back in 202 and is headed for an even stronger year in 2021. Record low mortgage rates are a major factor in this momentum, with average rates coming in close to all-time lows.

Seller traffic is just not keeping up with the buyer demand. Record-low inventory is creating a mismatch between supply and demand. In case you don’t remember what those graphs look like, when supply is low but demand is high, prices increase. NAR (National Association of Realtors) reported that the actual number of homes stands at 1.28 million nationally, which is down 22% from just a year ago. Additionally, inventory is at an all time low with 2.3 months supply available at our current sales pace. In a normal, or balanced market, that number would be 6.0 months of inventory—much higher than it is today.

What does this mean?

Buyers will need to remain patient in the search process. They also need to be able to act immediately once they find the right home for them since multiple offer situations and bidding wars are much more common since so fewer homes are available.

Sellers should not wait to capitalize on this opportunity. With such high buyer demand and such low supply, now is the perfect time to sell a home for optimal terms and price. Just make sure to have contingency plans in case your next home isn’t immediately available. This low supply/high demand will not last forever. With the pandemic slowing down and things slowly getting back to normal, as well as interest rates potentially rising, waiting too long has the possibility of those optimal terms and price going up in smoke.

Bottom Line

The real estate market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.