Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.
Doug Duncan, Vice President and Chief Economist at Fannie Mae, explains:
โOverall, the indexโs monthly increase was driven largely by a substantial jump in the share of consumers reporting that itโs a good time to sell a home, with many citing favorable mortgage rates, high home prices, and low housing inventory as their primary rationale.โ
Normally, spring is the busiest season in the housing market โ the time when many homeowners decide to list their houses. While this is obviously not a normal year since the pandemic is still very much upon us, experts are optimistic that consumer positivity around selling will lead to more homeowners making moves this year. Duncan continues to say:
โWe will pay close attention to see if this newfound optimism develops into a trend.โ
What does this mean if youโre thinking of selling your house?
The fact that there are so few houses available for sale today is one driver thatโs encouraging consumers to think more positively about selling. The National Association of Realtors (NAR) states:
“Total housing inventory at the end of January amounted to 1.04 million units, down 1.9% from December and down 25.7% from one year ago (1.40 million).โ
With so few homes available to buy, your house will be more likely to rise to the top of an eager purchaserโs wish list in this competitive market. Todayโs high buyer activity is creating upward pressure on home prices and more multiple-offer scenarios. According to the Realtors Confidence Index Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. This makes selling even more enticing.
In this kind of sellersโ market, you have a huge advantage in the process. And hereโs another win โ you can also use your equity toward a down payment on a new home when you move.
Wondering where youโll go if you try to move while itโs so challenging to find a home to buy? Well, in many areas, there are more homes available at the higher end of the market, so finding a move-up home may be less of an issue if youโre ready to search for your dream home this spring.
Bottom Line
If you pressed pause on selling your house last year, now may be the best time to put your plans back into motion while inventory is so low. Letโs connect today to get the process started.
Content previously posted on Keeping Current Matters
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