Historically, homeowners wait until the spring buying season to list their homes and it’s understandable because nearly 40 percent of home sales occur during that time. But in 2022, things are expected to be very different.
Let’s examine why it may be better to list your house now rather than waiting a few months.
Buyers are Active and they are Ready to Purchase
The Showing Time Index serves as a gauge for how many buyers are actively in the market at any given time.
The latest index ,which includes November, reveals that buys are actively searching in our market. In fact, compared to previous November data, the number of buyers actively looking for homes is much higher than in previous years.
It is generally acknowledged that during the winter months, buyers who are actively pursuing homes are more serious than springtime buyers. Freddie Mac addresses this phenomenon in a recent blog: “The buyers who are willing to house hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”
Based on the number of homes that have gone into contract in our market during the winter months and from my own experience with my own listings, there are plenty of buyers in the market for a home, and they’re ready and willing to buy.
Other Sellers Plan To List Earlier This Year
The law of Supply and Demand is simple. If you want the best price possible with the ability to negotiate contract terms favorably, it’s important to put your house on the market when the demand is strong and the competition is less.
A recent study by realtor.com reveals that many sellers plan to list their homes this winter instead of waiting until spring or summer. In fact, the study indicates that 65% of sellers who plan to sell in 2022 have either already listed their home or are planning to put it on the market before spring.
If you’re looking for the best price and the ability to best negotiate the other terms of the sale of your house, it may be wise to list before this competition hits the market.
Newly Constructed Homes Will Be Competition in the Spring Market for Some Areas
Due to the labor shortage and supply chain issues, many of the nearly one-million homes issued building permits in 2020 were delayed. Many of these homes are now in construction to be completed in 2022, creating additional potential competition when you sell your house. Beating these newly constructed homes to the market is something you should consider to ensure that your house gets as much attention as possible.
It May Be an Ideal Time for Move Up Buyers
With mortgage rates predicted to rise throughout the year, now may be a perfect time to move into a new home as interest rates remain in the mid-3s. Housing prices are projected to appreciate by approximately 5% over the next 12 months. Although that’s considerably less than the 19% appreciation rate we saw in 2021, a new home will cost you more (both in down payment and mortgage payment) if you wait.
It May Be a Great Time for YOU to Make a Change
Take a moment to consider why you’re thinking of selling in the first place and determine whether it’s worth waiting. If you are considering a move to be closer to loved ones, does waiting make sense? Is waiting more important than making a move for your health? If you could have the extra space you need now, would it make sense to make the move sooner than later?
Take some time to really prioritize what’s best for YOU and your family in 2022.
Bottom Line
If you’ve been debating whether to sell your house and are curious about market conditions in your area, give me a call and we can discuss your needs. No one knows the Pleasant Hill/Martinez market better than I do and I’d love to help you decide the best time to sell your home—and help you get the highest possible price.