Just like clocks recently did in most of the country, the housing market will soon “spring forward!” According to Alexandra Lee and Ralph McLaughlin of Trulia, there was a 10.5% decrease in US home inventory in Q4 2017. This lack of inventory is like tension in a spring waiting to be released and that is what is holding back the market right now.
Traditionally, sellers believe that waiting until Spring is in their best interest and until recently they would have been right. Buyer demand has historically had a seasonality to it. That is, folks tend to search for and purchase homes in the more temperate months of Spring. This seasonality usually falls off in the winter months, especially in areas of the country impacted by arctic conditions.
That hasn’t happened in 2018.
Even with the mortgage rates near historic lows, the demand for housing has remained strong. Despite the recent increase in rates homebuyers are still able to lock in an affordable monthly payment. This has the effect of many more buyers entering the market to ensure that they secure a lower rate.
A recent report by The National Association of Realtors (NAR) indicated that the top dates sellers listed their homes in 2017 all fell in the months of April, May, or June.
Given that we are entering those months, sellers who act quickly and list now could benefit greatly from gaining additional exposure to buyers prior to a flood of more competition coming to market in the next few months.
The Bottom Line
If your plans are to sell your home in 2018, meet with a local real estate professional to evaluate the opportunities in your market.
Until next time!