Many homeowners who plan to sell in 2022 may think the wise
thing to do is to wait for the spring buying market since historically about 40
percent of home sales occur between April and July. However, this year’s
expected to be much different than the norm. Here are five reasons to list your
house now rather than waiting until the spring.
1. Buyers Are Looking Right Now, and They’re Ready To
The ShowingTime Showing Index reports data from more than
six million property showings scheduled across the country each month. In other
words, it’s a gauge of how many buyers are out looking at homes at the current
The latest index, which covers November showings, reveals
that buyers are still very active in the market. Comparing this November’s
numbers to previous years, this graph shows that the index is higher than last
year and much higher than the three years prior to the pandemic. Clearly,
there’s an influx of buyers searching for your home.
Also, at this time of year, only those purchasers who are
serious about buying a home will be in the market. You and your loved ones
won’t be inconvenienced by casual searchers. Freddie Mac addresses this in a
“The buyers who are willing to house hunt in a winter
market, when there are fewer options, are typically more serious. Plus,
year-end bonuses and overtime payouts give people more purchasing power.”
And that theory is proving to be true right now based on the
number of buyers who have put a home under contract to purchase. The National
Association of Realtors (NAR) publishes a monthly Pending Home Sales Index
which measures housing contract activity. It’s based on signed real estate
contracts for existing single-family homes, condos, and co-ops. The latest
“…housing demand continues to be high. . . . Homes placed
on the market for sale go from ‘listed status’ to ‘under contract’ in
approximately 18 days.”
Comparing the index to previous Novembers, while it’s
slightly below November 2020 (when sales were pushed to later in the year
because of the pandemic), it’s well above the previous three years.
The takeaway for you: There are purchasers in the market,
and they’re ready and willing to buy.
2. Other Sellers Plan To List Earlier This Year
The law of supply and demand tells us that if you want the
best price possible and to negotiate your ideal contract terms, put your house
on the market when there’s strong demand and less competition.
A recent study by realtor.com reveals that, unlike in
previous years, sellers plan to list their homes this winter instead of waiting
until spring or summer. The study shows that 65% of sellers who plan to sell in
2022 have either already listed their home (19%) or are planning to put it on
the market this winter.
Again, if you’re looking for the best price and the ability
to best negotiate the other terms of the sale of your house, listing before
this competition hits the market makes sense.
3. Newly Constructed Homes Will Be Your Competition in
In 2020, there were over 979,000 new single-family housing
units authorized by building permits. Many of those homes have yet to be built
because of labor shortages and supply chain bottlenecks brought on by the
pandemic. They will, however, be completed in 2022. That will create additional
competition when you sell your house. Beating these newly constructed homes to
the market is something you should consider to ensure your house gets as much
attention from interested buyers as possible.
4. There Will Never Be a Better Time To Move-Up
If you’re moving into a larger, more expensive home,
consider doing it now. Prices are projected to appreciate by approximately 5%
over the next 12 months. That means it will cost you more (both in down payment
and mortgage payment) if you wait. You can also lock in your 30-year housing
expense with a mortgage rate in the low 3’s right now. If you’re thinking of
selling in 2022, you may want to do it now instead of waiting, as mortgage
rates are forecast to rise throughout the year.
5. It May Be Time for You To Make a Change
Consider why you’re thinking of selling in the first place
and determine whether it’s worth waiting. Is waiting more important than being
closer to your loved ones now? Is waiting more important than your health? Is
waiting more important than having the space you truly need?
Only you know the answers to those questions. Take time to think
about your goals and priorities as we move into 2022 and consider what’s most
important to act on now.
If you’ve been debating whether or not to sell your house
and are curious about market conditions in your area, let’s connect so you have
expert advice on the best time to put your house on the market.
Source: Real Estate with Keeping Current Matters