Three Indicators That Show Why Now is the Right Time to Sell Your Home
1. DEMAND is Strong
2. SUPPLY is Low
3. New Construction will soon be your COMPETITION
When selling anything, owners can only hope there is a strong demand for that which they are selling. The great news for today’s home sellers is that the current housing market is experiencing a stronger demand than we have seen in some time.
1.) National, State, and Local Statistics show home prices are up and inventories are down. Locally we’ve seen an increase in the number of sales and price’s throughout the valley.
2.) A seller’s ability to sell their home in today’s real estate market will be determined by both the supply of homes for sale and the demand for that housing. In real estate, supply is represented by the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).
While there is no steadfast rule that will apply to pricing in every category of housing, here is a great guideline:
- 1-4 months’ supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
- 5-6 months’ supply creates a balanced market. Historically home values appreciate at a rate a little greater than inflation.
- 7-8 months’ supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.
Contrary to what many believe, almost half of the sales in the desert happen after June 30, yes even during the hot summer months. The supply/demand ratio is showing favor for the home seller where prices appreciate. Selling now while demand is strong and supply is lower may garner your best price.
Each Quarter we run our “Market Action Report”, giving us an inside look at how each price band is performing and where the Action Is, which is a good indicator why now is the right time to sell your home. Why is this important to track?
Here are a couple of real examples, when we’re working with our clients on price positioning, and the question is if we should price at $990,000 or $1m, counter to what you may think, the answer is $1m. In the First Quarter of 2017, there were 26 sales per month in the $800,000 – $999,000 price band. When we move to the $1m – $1.499m price band, the monthly sales numbers increase to 31 sales per month. Showing there are more Buyer’s making offers in this price category, giving our client a better opportunity to sell their home.
Another example, if we’re thinking about a price position between $380,000 or $400,000. we see that the price band between $200,000 – $399,000, there were 386 closed sales in the first quarter of 2017, but when we move to the $400,000 – $599,000 price band the number of sales drops to just 135 per month. In this case, $380,000 would be the better price position. There are many factors that go into Strategic Price Positioning, this is just one important tool we use to increase the opportunities for our clients to receive offers and get their sell their homes sold for the highest price possible in the shortest amount of time.
Why Now is The Right Time to Sell Your Home
3.) Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market gains momentum, more and more builders are jumping in which will put pressure on the existing home resale market. These ‘shiny’ new homes will again become competition as they can be an attractive alternative for many home buyers.
As one of the leading teams in the desert real estate market and are here with the skill and market experience it takes to get your home sold for top dollar.
Call Cathi and Ben today to find out why 760.218.5752.