The best time to sell a house is when demand is high and the supply is low. Right now, the supply of available housing is struggling to keep up with the demand according to the latest Existing-Home Sales Report released by the National Association of Realtors (NAR).
If you are thinking about selling, now might be a good time to take advantage of the lack of supply and the amount of buyers looking to find their dream home. Though this trend is likely to continue through 2020, we recommend acting now so you don’t miss out.
EXISTING-HOME SALES REPORT
This report confirms that the amount of homes available has been low, not that sales have been low.
The report detailed:
- Housing inventory at the end of August 2018 decreased 2.6% to 1.86 million available homes.
- The amount of unsold homes is lower than the 4.3-month figure recorded in August 2018.
- This demonstrates a 4.1-month supply at the current sales pace.
Typically when there is less than a 6-month supply of available homes, we are considered to be in a seller’s market. A 6- to 7-month supply is considered a neutral market. A supply of more than 7 months means it is a buyer’s market and home values will depreciate.
As previously stated, the 4.1-month supply of homes on the market means that houses are fast to go under contract. The report also points out that 49% houses are on the market less than a month before being sold.
If you are thinking about selling, now may be the time while inventory is still low. There is an ample supply of buyers who are searching for their dream home!