Why Waiting To Sell Your Denver House Could Cost You A Small Fortune
January 22, 2022
The below post is a transcription from one of our recent videos. We have added additional information about the topic as well as additional graphics and resources. We hope you find this information helpful, and if there is a real estate topic you would like us to cover, please reach out! We love helping provide Real Estate information for the Denver metro area, which helps our real estate clients and anyone who could use the help.
Many homeowners planning to sell in 2022 may think the smartest move is to wait for the spring selling season since historically, 40% of home sales occur between April and July. That may not be the case this year. Check out these five reasons to list your house now rather than wait for spring.
1. Buyers Are Looking Right Now, and They’re Ready To Purchase
More than six million showings across the country are reported to the ShowingTime Showing Index monthly. Another way to look at it is to indicate how many buyers are looking at homes right now.
According to the recent index, which covers the month of November, buyers remain active in the market. According to this graph, the index for November is much higher than last year and well above the three years preceding the pandemic. There are tons of buyers looking at your house.
Furthermore, only serious home buyers are in the market at this time of year. There’s no need to worry about casual searchers annoying you and your family. Here’s an excerpt from Freddie Mac’s blog:
“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.”
According to the number of homes offered for sale under contract, this theory is proving true right now. Monthly, the National Association of Realtors publishes the Pending Home Sales Index, which measures activity in the housing market. The measure is based on previously signed contracts for existing single-family homes, condominiums, and cooperatives. The latest index shows:
“…housing demand continues to be high. . . . Homes placed on the market for sale go from ‘listed status’ to ‘under contract’ in approximately 18 days.”
Although the index is slightly below November 2020 (when sales were postponed due to the pandemic), it is well above the previous three years.
It would be best if you noted this: There are buyers in the market, and they are ready and willing to buy.
2. Other sellers plan on listing earlier this year
When it comes to selling a home, supply and demand tell us that if we want to get the best price and negotiate our ideal terms, we should put it on the market when demand is strong and competition is low.
According to a recent survey by realtor.com, more sellers plan to list their homes this winter rather than spring or summer. According to the study, 65% of sellers planning to sell in 2022 have already listed their home (19%) or are planning to do so in the near future.
As a result, listing before this competition hits the market makes a lot of sense if you want the best price and the ability to negotiate the other terms of the sale.
3. Newly Constructed Homes Will Be Your Competition in the Spring
In 2020, there were over 979,000 new single-family housing units authorized by building permits. Because of labor shortages and supply chain bottlenecks caused by the pandemic, many of those houses have yet to be built. However, they are expected to be fully constructed in 2022. As a result, your home will be up against more competition. You should consider bringing your house to market before these newly built homes to ensure that your house gets as much attention from potential buyers as possible.
4. There Will Never Be a Better Time To Move-Up
Do it now if you plan to move into a larger, more expensive home. In the next 12 months, home prices are expected to rise by about 5%. Waiting will mean paying more (both down payment and mortgage payment). Mortgage rates are right now in the low 3’s, so you can lock in your 30-year housing expense. The prediction of rising mortgage rates throughout the year is a good reason to act now instead of waiting if you’re thinking about selling in 2022.
5. It May Be Time for You To Make a Change
Consider your reasons for wanting to sell and whether you’re better off waiting. What’s more important to you: being with your loved ones or waiting? Is your health more important than waiting? Would you rather wait than have the space you need?
You can only answer those questions. As we move into 2022, think about your goals and priorities and decide what needs to be done now.
If you’ve been considering selling your house and are curious about the market conditions in your area, let’s connect. Give us a call for expert real estate advice on the best time to list your house.
The Denver Real Estate Agent is a licensed Broker in the state of CO and is a leading authority on Denver, CO area real estate. Our love for the communities we live and work in are why we do what we do. Call us today and experience the The Denver Real Estate Agent way of Denver area real estate.