Why Right Now Is a Once-in-a-Lifetime Opportunity for Sellers – Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert.
Why Right Now Is a Once-in-a-Lifetime Opportunity for Sellers - Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert.
If youāre thinking about selling your house in 2022, you truly have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope forĀ strong demandĀ for the item coupled with aĀ limited supply. ThatĀ maximizes your leverageĀ when youāre negotiating the sale. Home sellers are in that exact situation right now. Hereās why.
Demand Is Very Strong
According to the latestĀ Existing Home Sales ReportĀ from theĀ National Association of RealtorsĀ (NAR), 6.18 million homes were sold in 2021. This was the largest number of home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:
āSales for the entire year finished strong, reachingĀ the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, it's likely that a portion of December buyers were intent on avoiding the inevitable rate increases.ā
Demand isnāt expected to weaken this year, either. In addition, theĀ Mortgage Finance Forecast, published last week by theĀ Mortgage Bankersā AssociationĀ (MBA), calls for existing-home sales to reach 6.4 million homes this year.
Supply Is Very Limited
The same sales report from NAR also reveals the monthsā supply of inventory just hit the lowest number of the century. It notes:
āTotal housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.ā
The reality is, inventory decreases every year in December. Thatās just how the typical seasonal trend goes in real estate. However, the following graph emphasizes how this December was lower than any other December going all the way back to 1999.
Right Now, Sellers Have Maximum Leverage
As mentioned above, when thereās strong demand for an item and a limited supply of it available, the seller has maximumĀ leverageĀ in the negotiation. In the case of homeowners who are thinking about selling, there may never be a better time than right now. While demand is this high andĀ inventoryĀ is this low, youāll have leverage in all aspects of the sale of your house.
Todayās buyers know they need to beĀ flexible negotiatorsĀ that make veryĀ competitive offers, so here are a few areas that could tip in your favor when your house goes on the market:
- Competitive sales price
- Flexible closing date
- Potential for a leaseback to allow you more time to find a home
- Minimal offer contingencies
Bottom Line
If youāre thinking of selling your house this year, now is the optimal time to list it. Letās connect to discuss how you can put your house on the market today.
Call Christophe Choo at (310) 777-6342 to tour your future home"HERE"
or click"HERE"to estimate your home value.