In todayโs housing market, it seems harder than ever to find a home to buy. Before the health crisis hit us a year ago, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of record-low mortgage rates and purchase a home, housing inventory dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market while buyers continue to compete for homes. As Danielle Hale, Chief Economist at realtor.com, explains:
โWith buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to drop lower. In January as a whole, the number of for sale homes dropped below 600,000.โ
Every month, realtor.com releases new data showing the year-over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:
Does this mean houses arenโt being put on the market for sale?
Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than theyโre being counted as current inventory. The market is that competitive! Itโs like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. Thatโs whatโs happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers.
In the same realtor.com report, Hale explains:
โTime on the market was 10 days faster than last year meaning that buyers still have to make decisions quickly in order to be successful. Todayโs buyers have many tools to help them do that, including the ability to be notified as soon as homes meeting their search criteria hit the market. By tailoring search and notifications to the homes that are a solid match, buyers can act quickly and compete successfully in this faster-paced housing market.โ
The Good News for Homeowners
The health crisis has been a major reason why potential sellers have held off this long, but as vaccines become more widely available, homeowners will start making their moves. Ali Wolf, Chief Economist at Zonda, confirms:
โSome people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed.โ
With more homeowners getting ready to sell later this year, putting your house on the market sooner rather than later is the best way to make sure your listing shines brighter than the rest.
When youโre ready to sell your house, youโll likely want it to sell as quickly as possible, for the best price, and with little to no hassle. If youโre looking for these selling conditions, youโll find them in todayโs market. When demand is high and inventory is low, sellers have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.
Bottom Line
Todayโs housing market is a big win for sellers, but these conditions wonโt last forever. If youโre in a position to sell your house now, you may not want to wait for your neighbors to do the same. Letโs connect to discuss how to sell your house safely so youโre able to benefit from todayโs high demand and low inventory.
Content previously posted on Keeping Current Matters
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