Great Time to Sell
Are you considering selling your home? If so, now might be the perfect time. Inventory is at an all-time low, while demand is at an all-time high. Read on to explore how current market conditions and trends in the home building industry make this the perfect time to sell.
Getting the timing right: Personal factors
The main reasons why most people sell their homes today are downsizing, lifestyle changes, moving to a retirement community, or relocating closer to family and loved ones.
Although it can be an exciting milestone, selling a home is a journey that not everyone enjoys. However, it does not have to be a dreaded endeavor. Finding the right real estate agent to guide you is the key to navigating this process without the stress and headaches.
Of course, not all real estate agents are created equal, so look for an agent with a proven track record to ensure you get the best experience possible. When interviewing potential agents, look for someone you can trust to be honest, protect you from mistakes and pitfalls, and prioritize making the process as stress-free as possible. Read their reviews, and find out how long they have been in the industry.
Demand is high, and inventory is low
The housing market is currently experiencing historically low inventory while demand is at an all-time high. Despite the doubling of interest rates over the past year, home prices continue to rise, and multiple offers are becoming the norm on well-priced homes. Price reductions declined by over 37% nationally last month, setting us up for an active spring market. But why is the market so red-hot right now?
Builders are hesitant to build
After the economic crash in 2008, many builders got caught up in the chaos. As a result, when the economy rebounded, builders remained hesitant to build. In fact, 40% fewer homes have been constructed in the past decade than ever before.
At the beginning of 2023, the home inventory in the U.S. was down by 5 million homes from where it should have been, meaning that some prospective buyers want to move to a new place but cannot.
In total, only 750,000 properties are projected to be built in 2023. In contrast, the most homes built per year in the last 30 years was 1.4 million. At a rate of 750,000 per year, it would take over 6.5 years to make up what is missing, not including the new families and demand for homes. At the same time, past numbers show that even if production were significantly increased, the demand for housing would continue to outstrip supply for years to come.
Over 24% of Americans already live with three or more generations in the same house due to rental and home shortages and affordability. Escalating interest rates have only worsened the situation, causing multi-family homes to be highly sought-after.
The ultimate effect is two-fold: buyers are indeed looking for homes. They cannot find them, though, and even those who can afford market prices may be looking for larger homes to accommodate more family members in a single house.
Rentals are in-demand
The markets for homes for sale and houses for rent are not independent. As interest rates increase, the need for rentals also increases. A housing shortage also complicates renting, and as of the most recent count, the U.S. has a rental demand of 12 million units.
However, at the current build rate, it is expected to take over eight years to make up the rental inventory. This means there is a high demand for rental units, and renting out your home can be highly profitable.
Together with the housing shortage, the average family size at 3.13, and with 332 million people living in the usa, we are all looking at approx. 16% of the population looking to for a home!
However you choose to approach the market, this remains a great time to sell. Of course, getting the best price for your home takes experience and knowledge, which is where David & Fiona King of The KING TEAM comes into the picture. With the help of agents who knows the local market and has the data and tools to analyze where trends are going, you can rest assured you are getting the best possible deal.
David & Fiona King - The KING TEAM, have over 40 years of experience and over 125 5 STAR reviews!