Believe it or not, now may still be a great time to sell your house. If you have been concerned about a decline in buyer demand due to the increase in mortgage rates, current data indicates that there remains a substantial number of interested buyers. Although the housing market is not as feverish as it was during the 'unicorn' years characterized by soaring buyer demand, historically low mortgage rates, and unprecedented increases in home values, it is not stagnant.
On a national scale, demand continues to be robust compared to the more typical years in the housing market. Numerous buyers are actively engaging in purchase transactions. Recent ShowingTime Showing Index data serves as evidence supporting this observation.
The graph above illustrates a period of strong demand, referred to as the 'unicorn' years in pink. It also indicates a decrease in demand due to higher mortgage rates. However, when we compare the current year, 2023, with the blue bars representing the last typical years in the market (2018-2019), it's clear that buyers are still more active than usual.
However, looking at website traffic is not the only way to see that buyer demand is still high. The number of offers received by sellers and the average time homes spend on the market also tell the same story.
Based on the most recent information provided by the National Association of Realtors (NAR), homeowners are currently receiving an average of 2.5 offers on their properties. This is up slighly from this same time last year.
It's not just that sellers are consistently receiving more than the usual number of multiple offers; they are also experiencing quicker sales of their homes. As you can see from the graph below, homes this year are spending just slightly more time on the market than they did during the frenzied 'unicorn' years. When compared to the last typical years in the market, homes are still selling significantly faster. This is positive news for sellers as it indicates that there are still plenty of eager buyers in our current market.
So even with the increases interest rates that we've seen, homes are still selling faster than during the pre-'unicorn' years. You have not missed your opportunity to sell at a time when homes are selling fast!
If you have been considering selling a home in the upcoming year, let's connect!