Courtesy of Keeping
Current Matters – March 4, 2021
Last year, many
homeowners thought twice about selling their houses due to the onset of the
health crisis. This year, however, homeowners are beginning to regain their
confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI)
by Fannie Mae shows that 57% of consumers believe now is a good time to sell.
Doug
Duncan, Vice President and Chief Economist at Fannie Mae, explains:
“Overall, the index’s monthly increase was driven largely by a
substantial jump in the share of consumers reporting that it’s a good time to sell a home, with many citing favorable
mortgage rates, high home prices, and low housing inventory as their primary
rationale.”
Normally, spring is the busiest
season in the housing market – the time when many homeowners decide to list
their houses. While this is obviously not a normal year since the pandemic is
still very much upon us, experts are optimistic that consumer positivity around
selling will lead to more homeowners making moves this year. Duncan continues
to say: “We
will pay close attention to see if this newfound optimism develops into a
trend.”
What does this mean if you’re thinking of
selling your house?
The fact that
there are so few houses available for sale today is one driver that’s
encouraging consumers to think more positively about selling. The National
Association of Realtors (NAR) states:
“Total housing inventory at the end of January amounted to 1.04
million units, down 1.9% from December and down 25.7% from one year ago (1.40 million).”
W
ith so few homes
available to buy, your house will be more likely to rise to the top of an eager
purchaser’s wish list in this competitive market. Today’s high buyer activity is creating upward pressure on
home prices and more multiple-offer
scenarios. According to the Realtors Confidence Index
Survey from NAR, the average home for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago.
This makes selling even more enticing.
I
n this kind
of sellers’ market, you have a huge advantage in the process. And here’s
another win – you can also use your equity toward a down payment on a new
home when you move.
Wondering where
you’ll go if you try to move while it’s so challenging to find a home to buy?
Well, in many areas, there are more homes available at the higher end of
the market, so finding a move-up home may be
less of an issue if you’re ready to search for your dream home this spring.
Bottom Line
If you pressed pause on selling your
house last year, now may be the best time to put your plans back into motion
while inventory is so low. Contact a Signature Real Estate Services
professional today to get the process started.