Existing-Home Sales Report Indicates Now Is a Great Time to Sell

By Keeping Current Articles October 14, 2019
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Existing-Home Sales Report Indicates Now Is a Great Time to Sell | Simplifying The Market

Based on the current state of the market, trends are shifting in favor of sellers. If you are going to sell, now may be the time to take advantage of the number of buyers who are searching for their dream home.

The best time to sell anything is when demand for that item is high and the supply of that item is limited. The latest Existing-Home Sales Report released by the National Association of Realtors (NAR), reveals that demand for housing continues to be strong, but the supply is struggling to keep pace. With this trend likely continuing throughout 2020, now is a great time to sell your house.

THE EXISTING-HOME SALES REPORT

The most important data revealed in this report was not actually sales. In reality, it was the inventory of homes for sale (supply). The report explained:

  • Total housing inventory at the end of August decreased 2.6% to 1.86 million homes available for sale.
  • Unsold inventory is lower than the 4.3-month figure recorded in August 2018.
  • This represents a 1-month supply at the current sales pace.

According to Lawrence Yun, Chief Economist at NAR,

“Sales are up, but inventory numbers remain low and are thereby pushing up
home prices.”

In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect depreciation in home values (see below):Existing-Home Sales Report Indicates Now Is a Great Time to Sell | Simplifying The MarketAs we mentioned before, there is currently a 4.1-month supply of homes on the market, and houses are going under contract fast. The Existing Home Sales Report also shows that 49% of properties were on the market for less than a month when they were sold. In August, properties sold nationally were typically on the market for 31 days. As Yun notes, this should continue,

“As expected, buyers are finding it hard to resist the current rates…The desire to take advantage of these promising conditions is leading more buyers to the market.” 

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market, and supply will fail to catch up with demand if a sizable supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers who are out there searching for your house to become their dream home.

Content previously posted on Keeping Current Matters

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About the Author
Richard Wamsat
Richard Wamsat
Richard Wamsat is a Broker Associate and REALTOR with Coldwell Banker Realty in Irvine, California (CalDRE #01345167). Since 2002, Richard has represented clients throughout California in all price ranges, from first time homebuyers purchasing their first condo to seasoned investors buying and selling higher end properties. His current focus is on helping buyers and sellers in Orange County.

Richard bought his first home at nineteen and has worked in both Northern and Southern California markets, including the difficult years of the Great Recession when he negotiated with banks to help homeowners avoid foreclosure or get relief from underwater mortgages. That experience, combined with hundreds of successful closings since, gives his clients a practical understanding of how deals really get done in changing markets.

Committed to professional negotiation, Richard earned the Master Certified Negotiation Expert (MCNE) designation from the Real Estate Negotiation Institute, a member of the Harvard Program on Negotiation, along with additional credentials such as CNE, AHWD, CDPE, and SFR. Fewer than one percent of agents nationwide have achieved the MCNE designation, and Richard uses that training to structure offers, counteroffers, and terms that protect his clients’ interests without overpromising or relying on gimmicks.

Richard lives in Irvine with his wife, Brandy, and their fluffy white dog, Murphy. When you hire him, you get a calm, data driven advisor who takes the time to explain your options, walk you through the numbers, and help you make confident decisions about buying or selling a home in Orange County.