NAR: Two Reasons to Sell This Winter
It has been quite a seller’s market over the last year as current home inventory is still low. If more homes don’t come on the market, prices will continue to rise going forward. Buyers are definitely out there looking to make a purchase and we are seeing very strong activity throughout the market. This includes our luxury home market and our downtown condo market but really, demand for homes and condos have extended to the entire Grand Rapids housing market.
NAR’s Pending Home Sales Report
Homes that are under contract (on their way to close) are up over 3.9% over last year. This has increased for 14 consecutive months.
We can safely project that demand for housing will continue throughout the coming months and the seasonal slowdown hasn’t yet started and will probably be minimal.
NAR’s Existing Home Sales Report
The most important data point revealed in the report was not sales but instead the inventory of homes on the market (supply). The report explained:
- Total housing inventory decreased 2.3% to 2.14 million homes available for sale
- That represents a 4.8-month supply at the current sales pace
- Unsold inventory is 4.5% lower than a year ago
Here is a good rule of thumb in real estate. When there is less than 6 months inventory available, we are in a sellers’ market and we will see appreciation. Between 6-7 months is a neutral market where prices will increase at the rate of inflation. More than 7 months inventory means we are in a buyers’ market and should expect depreciation in home values.
If you are Thinking of Selling, Now May be the Time
Curious as to what your home is valued at? Find out here in a few minutes or contact me today for a detailed report of what your home will sell for.