Should you Sell this Winter?
The last two major reports (Pending Home Sales and Existing Home Sales) issued by the National Association of Realtors (NAR) revealed information that suggests that selling this winter may be your best move.
The Pending Home Sales Report
The report announced that pending home sales (homes going into contract) are up 3.9% over last year, and have increased year-over-year now for 14 consecutive months.
Lawrence Yun, NAR’s Chief Economist, expects demand to remain stable through the final two months of the year, and “forecasts existing-home sales to finish 2015 at a pace of 5.30 million – the highest since 2006.”
Takeaway: Demand for housing will continue throughout the end of 2015 and into 2016. The seasonal slowdown often felt in the winter months hasn’t started and shows little signs of being near – even more reason to sell this winter.
The most important data point revealed in the report was not sales but instead the inventory of homes on the market (supply). The report explained:
• Total housing inventory decreased 2.3% to 2.14 million homes available for sale
• That represents a 4.8-month supply at the current sales pace
• Unsold inventory is 4.5% lower than a year ago
When there is less than 6 months inventory available, we are in a sellers’ market and we will see appreciation. Between 6-7 months is a neutral market where prices will increase at the rate of inflation. More than 7 months inventory means we are in a buyers’ market and should expect depreciation in home values.
As rents and prices increase, potential buyers will not able to save as much for a down payment and many may become priced out of the market.
Takeaway: Inventory of homes for sale is still well below the 6 months needed for a normal market. Prices will continue to rise if a ‘sizeable’ supply does not enter the market. Take advantage of the ready willing and able buyers that are still out looking for your house.
With over 25 years of experience, our team is ready to help!
Hilton Head Real Estate Partners
Partnering with you every step of the way.