This season comes with unique opportunities for sellers. Here are our top five:
1. Housing inventory is limited.
The housing inventory shortage isn’t news to most people. It’s been making headlines for the past few years. Today, we still have a long way to go before we can correct these historically low supply levels.
The inventory of unsold homes currently sits around a three months’ supply—below what’s needed to sustain a healthy market:
- When the Months’ Supply of Inventory (MSI) is less than four months, sellers have the negotiating power.
- When the MSI reaches six months, it’s considered a buyer’s market.
- Ideally, the MSI will sit between four- and six-months’ supply to maintain balance.
Such limited supply levels indicate that we remain in a seller’s market. Compared to a year ago, today’s active listings are also 22.7 percent lower. One main contributor to low inventory is that far fewer sellers are listing. For those ready to sell a house, record-low inventory levels support now being an ideal time.
2. Homebuyers are serious.
While spring and summer are known to be booming seasons to sell a house, fall is when highly motivated homebuyers stick around.
- If you list now, you can count on the fact that buyers touring your home aren’t browsing—they’re intent on making a purchase.
- Many homebuyers purchasing in the fall want to close and move in before the holidays.
- The recent REALTORS® Confidence Index from the National Association of REALTORS® (NAR) shows that the market remains active; the typical home received more than three offers, and more than a third sold above asking price.
Homes are continuing to sell relatively quickly and comparable to the year before, typically closing within 30 days. More than three-quarters of homeowners were able to sell a house within a month. ShowingTime’s Showing Index also confirms that buyer traffic patterns are on par with typical, pre-pandemic seasonal levels.
Fall in love with a brand-new house.
If you’re ready to move up, contact your local Academy Loan Officer for guidance.
3. Mortgage rates could start improving.
Mortgage rates have increased without any sign of dropping. Much of this has to do with multiple Fed rate hikes enacted to control inflation.
Thankfully, inflation has hit new lows, which suggests that mortgage rates may also start to fall. “While new inventory is needed, lower rates would bring current owners out of their homes they may have outgrown, and into the market,” Jessica Lautz, NAR Deputy Chief Economist, says.
What does this mean if you want to sell a house? Forecasts suggest that mortgage rates may decline soon, making it more affordable to purchase your next home. If you have questions about when to list based on projected mortgage rates, ask your Academy Loan Officer for a cost of waiting analysis.
4. Your house will stand out.
Fall is usually a time when home sellers retreat after the busy months of summer. But if you stay in the game and list in the fall, you’re likely to see a lot less seller competition. Depending on the demand in your area, you may have even more power to negotiate. You may not have to make repairs, and you can be choosy about the offer you pick.
There’s also no season like the fall to create a warm and inviting atmosphere. Just dim the lights, stoke the fire, and use natural curb appeal (i.e., changing leaves) to attract buyers.
5. You could use your equity to move up, relocate, or downsize.
If the home you’re living in is too small, too large, or in the wrong location, it could be time for a change. Today’s homeowners have accumulated a record amount of home equity—up to $270,000 on average. Many are leveraging it to sell a house and power their move closer to family or to a dream location.
A Redfin survey recently found that Americans are relocating to gain cheaper housing and a lower cost of living and to escape the effects of climate change. “Nearly all of the most popular destinations have cheaper homes than the places out-of-towners come from,” Redfin states.