The best time to sell anything is when demand for the item is high and supply is low. The latest Existing-Home Sales Report released by the National Association of Realtors (NAR), shows that demand for housing is still strong, but the supply is lower than in recent years. This trend will likely continue through 2020. Guess what?! This mean that NOW is a great time to sell your house!
The most important information in this report is not necessarily the sales. Rather, it was the inventory of homes for sale (supply). Total housing inventory at the end of August decreased 2.6% to 1.86 million homes for sale. Additionally, unsold inventory is lower than the 4.3-month figure recorded in August 2018. This represents a 4.1-month supply at the current sales pace.
In real estate, there is a simple guideline that often applies. When there is less than a 6-month supply of inventory available, we are in a seller’s market. This means we will see greater appreciation. A 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. At a 7-month supply means we are in a buyer’s market and can expect depreciation in home values (see below):
Currently, there a 4.1-month supply of homes on the market, and houses are going under contract quickly. The Existing Home Sales Report also shows that 49% of properties were on the market for less than a month before selling. In August, properties sold nationally were typically on the market for 31 days. According to Lawrence Yun, Chief Economist at NAR, this trend is expected to continue.
The market continues to be strong. If you are going to sell, now may be the time to take advantage of the current market trend. There are many qualified buyers out there that are waiting to buy your home!