It is common knowledge that a great number of homes sell during the spring-buying season. For that reason, many homeowners hold off on putting their homes on the market until then. The question is whether or not that will be a good strategy this year.
The other listings that do come out in the spring will represent increased competition to any seller. Do a greater number of homes actually come to the market in the spring as compared to the rest of the year? The National Association of Realtors (NAR) recently revealed the months in which most people listed their homes for sale in 2017. Here is a graphic showing the results:
The three months in the second quarter of the year (represented in red) are consistently the most popular months for sellers to list their homes on the market. Last year, the number of homes available for sale in January was 1,680,000.
That number spiked to 1,970,000 by May!
Capitalize on the Market Surge
We haven’t seen serious mortgage rate increases for over a decade. However, with the continued rate increases implemented by the Federal Reserve it’s safe to say that mortgage rates are on the rise this year.
With the current housing inventory crisis, a move-up seller will be in great position to sell at peak market and then capitalize on the lower interest rate on their next home. Most will even be able to keep similar monthly housing payments while transferring their equity into a larger home.
But when will they plan to sell? Our guess is that we will see an increase of inventory in mid-to-late spring.
What does this mean to you?
With the national job situation improving, and mortgage interest rates projected to rise later in the year, buyers are not waiting until the spring; they are out looking for homes right now. Plus, other homeowners are also realizing that this year is the year to sell and make their move to a larger home, meaning more homes will also be expected to hit the market come Spring. So, if you are looking to sell this year, don’t wait until the spring to list your home as you may find more competition to capture motivated buyers.
It may make sense to beat the rush of housing inventory that will enter the market in the spring and list your home today.