Unless you live under a rock, chances are you've heard that we’re in the ultimate sellers’ market right now in Santa Cruz County, the California Bay Area and across most of the country.
If you’re a homeowner thinking about selling, you have a huge advantage in today’s housing market. High buyer demand paired with very few houses for sale makes this the optimal time to sell for those who are ready to do so. Whatever the move you want to make looks like, here’s an overview of what’s creating the prime opportunity to sell this summer.
High Buyer Demand
Demand is strong, and buyers are actively searching for homes to purchase. In the Realtors Confidence Index Survey published monthly by the National Association of Realtors (N.A.R.), buyer traffic is considered “very strong” in almost every state. Homebuyers aren’t just great in number right now – they’re also determined to find their dream home. N.A.R. shows the average home for sale today receives five offers from hopeful buyers. These increasingly frequent bidding wars can drive up the price of your house, which is why high demand from competitive homebuyers is such a win for this summer’s sellers.
Low Inventory of Houses for Sale
Purchaser demand is so high, the market is running out of available homes for sale. As Danielle Hale, Chief Economist at realtor.com, explains:
“For most sellers listing sooner rather than later could really pay off with less competition from other sellers and potentially a higher sales price… They’ll also avoid some big unknowns lurking later in the year, namely another possible surge in COVID cases, rising interest rates and the potential for more sellers to enter the market.”
Unsold inventory sits at a 1-months’ supply at the current sales pace in Santa Cruz County. This is far lower than the historical norm of a 4 to 6 months’ supply. Homes are essentially selling as fast as they’re hitting the market.
At the same time, homebuilders are increasing construction this year, but they can’t keep up with the growing demand.
While reporting on the inventory of newly constructed homes, the U.S. Census Bureau notes:
“The seasonally‐adjusted estimate of new houses for sale at the end of April was 316,000. This represents a supply of 4.4 months at the current sales rate.”
So, What Does This Mean for You?
If you’re thinking of putting your house on the market, don’t wait. A seller will always negotiate the best deal when demand is high and supply is low. That’s exactly what’s happening in the real estate market today.
The Bottom Line is
As vaccine rollouts progress and we continue to see the economy recover, more houses will come to the market. Don’t wait for the competition in your neighborhood to increase. If you’re ready to make a move, now is the time to sell.
If you are thinking about selling or wondering what the best strategy is for your family and home I would love to help answer those questions for you.
If you're interested in meeting to discuss your options, no cost or pushy salesy stuff EVER, feel free to call or text me at 831-854-7489. My full contact information is below.
I’m Liz Kroft co-founder and realtor with Sol Property Advisors and the 2021 President of the Women’s Council of Realtors. See you soon.
