When Is The Best Time to Sell? When Competition Is at an All-Time Low
Thanks for stopping by to read this. As an active Realtor in Parker Colorado, here is my take on this. Making predictions on the real estate market and when is the best time to buy and sell is a tricky thing. There are many factors to consider. Are you just selling, just buying or selling and buying.
Sample Situations You May Find Yourself In
- Just selling – sell when the competition is low and demand a higher price.
- Just buying – buy when inventory is ample and demand a lower price.
- Selling and Buying – this is where it gets tricky. When the market is declining, you should sell your home before prices decline even further. If you can afford to wait to buy, this would be the best scenario. As the market is increasing, then the home your selling will go up in value. Should you do not need to buy right away and can wait until later, this would the best scenario.
When you want to sell and buy in the same market is where having a Realtor like myself becomes invaluable. Here are 3 episodes to considerin a low inventory marketplace.
Selling in a low inventory marketplace. – Getting a higher price and possibly multiple offers.
Buying in a low inventory marketplace. – Having to pay more for the home and possibly competing with other offers and not getting your offers accepted.
Appraisers have a tough time coming up with an appraised value of a new sale while the market prices are increasing. Almost every home sold in a neighborhood could sell for more than the last one. When selling, if the appraisal comes in lower than your sales price, the deal can fall through unless the buyer comes up with more cash, you reduce your price, or compromise somehow with the buyer. When buying if the appraisal comes in low, you can back out of the deal, pressure the seller to come down in prices, come up with more cash, or compromise somewhere with the seller.
Let’s discuss your situation and goals. Allow me to help you with a no-obligation consultation.
BRIAN CHANDLER | 720-808-1007
In a recent survey of home sellers by Qualtrics, 87% of respondents said they were concerned their home won’t sell because of the pandemic and resulting economic recession. Of the respondents, 51% said they are “seriously worried.” That concern seems reasonable considering the current condition of the economy. The data, however, is showing that home purchasers are still very active despite the disruptions American families have experienced this year.
The latest Existing Home Sales Report published by the National Association of Realtors (NAR) revealed that 340,000 single-family homes sold in this country last month. NAR’s most recent Pending Sales Report (homes going into contract) surpassed last month’s number by over 44%, which far exceeded analysts’ projections of 15%. ShowingTime reported that appointments to see homes (both virtually and in-person) have increased in every region of the country and are up 21.4% nationwide over the same time last year.
While buyer activity is surging, the number of listings has fallen to an all-time low. Zelman Associates, in their latest residential real estate report, revealed that housing inventory as a percentage of households has fallen to 1.2%, which is half of the long-term average and lower than any other time in our history.
Bidding Wars Heating Up Again
With buyer demand growing and the supply of available homes shrinking, purchasers are again finding themselves needing to outbid other buyers. NAR, in a recent blog post, revealed:
“On average, there were about three offers on a home that closed in May, up from just about two in April 2020 and in May 2019 (2.3 offers).”
Bidding wars guarantee houses sell quickly at a price near or even slightly over the listing price.
Bottom Line
If you’re thinking of selling, don’t be concerned about putting your house on the market right now. There’s no better time to sell an item than when demand for it is high and supply is low. It is exactly at that time when you will negotiate your best possible deal.
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