What Is The Update On The Housing Inventory Shortage?
Despite there being a boom in buyer activity, many markets are experiencing a housing shortage. Although many markets are experiencing a booming seller’s market, according to top agent insights, 53.6% of real estate agents say sellers are still reluctant to put their homes up for sale. Fortunately, those who are looking for a quick home sale can breathe easily because there’s no shortage of qualified buyers ready to snatch up newly listed homes.
If there are so many buyers, what’s the real reason people are reluctant to put their homes on the market? More importantly, is this going to be a lasting problem or will there be light at the end of the tunnel?
If you’re thinking about selling, here are some reasons why you may want to list.
Housing demand is on the rise
All over the country, the housing inventory has been dwindling at an alarming rate. A huge reason there’s an influx of buyers looking for houses is that interest rates are still really low and folks are taking advantage of those low rates – even though there’s been a slight rate increase during the past few weeks. People are buying houses within days of the listing going live. People are bidding on houses sight unseen and are even making offers above asking. Inventory is so low, people are skipping home inspections and are excluding contingencies, both of which are intended to protect the buyer!
Bidding wars are increasing in frequency
In a report released by NAR, home prices increase by 14.1% annually, but prices are rising even further because of bidding wars. Bidding wars are becoming so frequent, 94% of agents say the bidding wars are getting heated and driving prices up on homes even further! This is a boon for sellers, but buyers with tight budgets are being priced out of homes – sometimes to the point where buying is no longer feasible.
More offers mean quicker closings
Despite heated bidding wars, it’s common for properties to receive multiple offers, especially if the property is in a desirable neighborhood or has in-demand features and amenities. Buyers who submit offers without contingencies that hinge on home inspections or securing financing is a lot more appealing to sellers because it speeds up the deal and could only take a couple of weeks rather than the typical 5 to 6 weeks.
Relocating is an option for remote workers
It’s estimated that 40% to 60% of employees are currently working from home and it’s estimated that 25% to 30% of them will be doing so on a permanent basis. This means that employees no longer have to live in expensive areas where they’d have to commute to the office day in and day out. Instead, they can pack their bags and move to a quieter area that’s more affordable and have more space.
You can make bank if you sell now
Putting your home on the market is something that you need to be certain is the right move for you and your family. You need to take time when picking a real estate agent because you don’t want to go with just anyone. There’s no guarantee that they’ll have your best interest at heart. Yes, they may offer you advice about the listing price and what offers are in your favor, but they may not advocate on your behalf so you get the best deal possible.
However, if you do your research and hire a top-selling agent for your area, you can rest assured that you’ll come out ahead if you list now. And, if you’re worried about buying a house after your current one is sold, let your agent know so they can work with you on finding your new home as well!
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