Thinking of Selling Your Home? The Waiting Is The Hardest Part.

Published on November 11, 2019

Thinking of Selling Your Home? The Waiting Is The Hardest Part.

Tom Petty famously penned the words, “the waiting is the hardest part” in his early 80’s hit song The Waiting, and his thought process can surprisingly also be applied to individuals considering selling their homes today. Traditional thinking would suggest it may be best to wait until the spring to sell when there is a flood of buyers in the market, but right now may in fact be an even better time to list your home.

We can see the overall economy is good: wages are rising, there are near
record-low unemployment rates, and mortgage interest
are still very low too. Over the past 10+ years the housing market
has stabilized, so what (if anything) is the biggest challenge in the housing
market today?

The answer is simple: it’s inventory.

According to the Existing Home Sales
by the National Association of Realtors,

“Total housing inventory at the end of September sat at 1.83 million, approximately equal to the amount of existing-homes available for sale in August, but a 2.7% decrease from 1.88 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, up from 4.0 months in August and down from the 4.4-month figure recorded in September 2018.”

What does this mean?

While homes are coming to the market, they aren’t coming fast enough! Right
now, across the country there is less than 6 months of overall inventory of
homes for sale, putting us in a seller’s market. The challenge is that there are
not enough homes for sale to increase the supply needed for the number of
people who want to buy, especially in the starter and middle-level markets.

To be in a balanced market (meaning we have enough inventory for the number
of buyers in the market), we need to have 6 months of inventory available.
Today we are nowhere near that number, and as a matter of fact, the last time
we reached that height was August 2012 (as shown in the graph below):

When we look at the inventory challenge today, we can see that now is a great time to sell your house. Truthfully, waiting may end up being the hardest part in the long run. This landscape is a great place for sellers who own homes in the starter and middle-level markets to take the opportunity to sell in a sellers’ market, before inventory catches up with demand. Serious buyers are actively in the market and ready to make a move at this time of year. When inventory is limited at the lower end, like it is today, selling before more homes are listed could mean a significant seller’s advantage to those who are ready to move up. The upper level of the market has much more inventory available to move into, so it’s a win across the board.

Bottom  Line

If you’re considering selling your home, don’t wait – now is the time to
make your move! Take advantage of the high housing demand and the low inventory
of homes for sale at the lower end of the market and use your purchasing power
while mortgage rates are low to go after the move-up home of your dreams. Let’s
get together to decide if now is the right time for you.

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