The #1 Reason Not to Wait to List Your House for Sale

Posted by Paige Rose on Monday, October 19th, 2020 at 9:27am

Home Inventory Levels September 2020

While many industries have been devastated by the economic shutdown caused by the COVID-19 virus. Real estate is not one of them.

Mark Fleming, Chief Economist for First American, just reported:

“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”

Buyer demand is still strong heading into the fall. ShowingTime, which tracks the average number of buyer showings on residential properties, just announced that buyer showings are up 61.9% compared to the same time last year. They went on to say:

“Normally, real estate activity begins to slow down in the late summer, but this year it peaked in July, August and into September.”

In a recent report from Realtor.com, Suburban areas are outperforming urban areas during the recovery. This is great news for the Lowcountry real estate market. As seen in the graphic below, the difference in numbers is not tremendous. Still, price acceleration and the number of properties selling are greater in the suburban areas versus urban areas. It's clear that buyers are looking to move to less dense areas right now. Plus, their desire for more space, outdoor living, and the ability to work from home drives the desire to move to urban spaces. 

Suburban Real Estate Market

There Is One Big Challenge

Purchaser demand is so high, the market is running out of available homes for sale. Just last week, realtor.com reported:

“Since the beginning of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in the U.S. housing inventory.”

The National Association of Realtors (NAR) revealed that, while home sales are skyrocketing, the inventory of existing homes for sale is dropping dramatically. Below is a graph of existing inventory (September numbers are not yet available):

Home Inventory Levels Nationwide

Homebuilders are increasing construction, but they cannot keep up with the high demand. Bill McBride, founder of the Calculated Risk blog, in discussing inventory of newly constructed houses, notes:

“The months of supply decreased to 3.3 months...This is the all-time record low months of supply.”

What does this mean for sellers?

Anyone thinking of putting their home on the market should not wait. A seller will always negotiate the best deal when demand is high, and supply is limited. That’s exactly the situation in the real estate market today. Now is the time to sell.

 

Bottom Line

Let’s connect today to get your house on the market at this optimal time to sell. 

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