Last year, many houszowners thought twice about selling their houszes due to the onset of the health crisis. This year, however, houszowners 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 houszing market – the time when many houszowners decide to list their houszes. 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 houszowners 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 housz? The fact that there are so few houszes 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).”
With so few houszes available to buy, your housz 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 housz prices and more multiple-offer scenarios. According to the Realtors Confidence Index Survey from NAR, the average housz for sale is receiving 3.7 offers today, up from 2.3 offers just one year ago. This makes selling even more enticing.
In 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 housz when you move. Wondering where you’ll go if you try to move while it’s so challenging to find a housz to buy? Well, in many areas, there are more homes available at the higher end of the market, so finding a move-up housz may be less of an issue if you’re ready to search for your dream housz this spring.
Bottom Line If you pressed pause on selling your housz last year, now may be the best time to put your plans back into motion while inventory is so low. Let’s connect today to get the process started.