Why Is This a Once-in-a-Lifetime Chance for Sellers?

If you’re thinking about selling your home in 2022, you’re sitting on a once-in-a-lifetime opportunity. When selling something, you want to make sure there is a high demand for the item and a limited supply. When you’re negotiating the transaction, this gives you the most power. Right now, home sellers are in that predicament. This is why.

Demand is Really High

According to the National Association of Realtors’ (NAR) latest Existing Home Sales Report, 6.18 million homes were sold in 2021. This year saw the most home sales in 15 years. NAR’s Chief Economist, Lawrence Yun, explains:

“Sales for the entire year finished strong, reaching the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers was intent on avoiding the inevitable rate increases.”

This year’s demand isn’t anticipated to be any less robust. Furthermore, according to the Mortgage Bankers’ Association’s (MBA) Mortgage Finance Forecast released last week, existing-home sales will hit 6.4 million this year.

Supply is Quite Limited

The months’ supply of inventory just achieved the lowest amount in the century, according to the same NAR sales data. It says:

“Total 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.”

In reality, inventory drops in December every year. That’s how the average seasonal real estate trend works. The next graph, on the other hand, illustrates how this December was lower than any other December since 1999.

Right Now, Sellers Have The Most Leverage

As previously stated, when there is high demand for an item and only a limited supply of it is accessible, the seller has the most bargaining power. There may never be a better time for homeowners who are considering selling than right now. You’ll have power in all facets of the selling of your home while demand is high and inventory is low.

Today’s buyers understand the importance of being flexible negotiators who submit competitive offers, so here are a few points to consider when your home 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 you’re planning to sell your home this year, now is the best time to put it on the market. To learn more about putting your home on the market now, connect with us today!