If you’re thinking of waiting until spring to list, the statistics say this is a bad idea.
Before I delve into your November market report, I want to say I hope you had a great Thanksgiving. This is the time of year that we reflect on the things we are grateful for, and my team and I are grateful for you.
Something interesting has been happening in our market lately. As I’ve said before, the increase in home sales has been causing appreciation to slow down. More homes means buyers have a greater selection. Over the past three months, though, things have gone in the other direction. If we look at the year-over-year housing supply over the last 12 months, we see that the gap between this year and last year is getting worse and inventory levels are dropping again.
If you think there are more homes on the market now than there were in 2018, you’re not alone. According to a recent survey done by NerdWallet, roughly 45% of all homeowners believe the same thing, and 58% of those same homeowners plan to sell in the next 18 months.
So, even though there are fewer listings available, many homeowners believe that the opposite is true. If you’re thinking of waiting until spring to list (during the supposed “buyer’s market”), I’ll explain why this isn’t a good idea.
First, the supply of listings increases substantially—including new construction—which lowers the demand for your home. According to the statistics, most listings come on the market during the second quarter of the year (April, May, and June). This means if you’re waiting for the spring market, so are your neighbors. This will result in a dramatic increase in competition from other sellers.
Obviously, I can’t predict what will happen in the next six months, but as you can see on the slide at 2:45 in the video, there were a lot fewer listings on the market during December of last year and January and February of this year than there were in April, May, and June.
If you assume that more listings equals more buyers, the next slide at 3:07 shows that our month’s supply of inventory (i.e., how many listings for sale versus how many people are buying houses) is much lower from now until March than it is in April, May, and June. The higher that number is, the better the conditions are for buyers.
So whether you’re thinking about upgrading or downsizing, don’t get caught in the crowded spring market. Take advantage of where our market is now. If you still plan on selling in 2020, then now is the time to start preparing. I call this “advanced real estate planning,” and as your real estate planner, I believe it’s important to start earlier than you think.
To learn about all of my home selling strategies, and get a free copy of my book “How to Fight the Home Selling Sharks,” be sure to register for my next home selling seminar on Saturday, January 18, 2020 at the Fort Washington Garden Inn at 9:30 a.m. To find out more, visit homesharkseminar.com or call (215) 576-8666.
If you’d like to sell now, give me a call and I’ll put your home on our “coming soon” website so buyers can see your home weeks before it comes on the market. If you have any questions about our market, feel free to reach out to me as well. I’d love to help you.