Tag Archives: #daysonmarket

Should You Sell Your House This Year?

There’s no denying that the housing market is undergoing a shift as buyer demand slows and the number of homes for sale grows.

On Cape Cod, there were 231 homes for sale in January. In August, there were 563. This is nowhere near what we consider to be a normal market. But, what it does represent is a slow tick upward in the number of homes available.

So, here’s a look at the key opportunities you have if you list your house this fall.

Opportunity #1: Where Can You Go?

We often hear from those who are thinking about selling that their biggest concern is that they don’t know where they can go. But, one of the biggest stories today is the growing supply of homes for sale primarily because higher mortgage rates helped cool off the peak frenzy of buyer demand. But what you may not realize is, this actually can benefit you as a seller

If you’re marketing your house to make a move, it means you’ll have more options for your own home search. This gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find somewhere to go, know your options have improved.

Opportunity #2: The Number of Homes on the Market Is Still Low

Just remember, while data shows the number of homes for sale has increased this year, housing supply is still firmly in sellers’ market territory. To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there needs to be a six months’ supply of homes nationally. According to the latest report from the Cape and Island Association of Realtors there’s a 1.9 month supply here.

While you’ll have more options for your own home search, inventory is still low, and that means your home will still be in demand if you price it right. On Cape, the Cumulative Days on Market Before Sale is 29 (YTD), still quick by traditional standards, but not the gone-in-a-weekend pace of even just a few months ago.

Opportunity #3: Your Equity Has Grown by Record Amounts

The home price appreciation that the market experienced over the past few years has likely given your equity (and your net worth) a considerable boost.

Danielle Hale, Chief Economist at realtor.comexplains: “Homeowners trying to decide if now is the time to market their homes are still in a good position in many places across the country as a decade of rising home prices gives them a substantial equity cushion…”

While there are no statistics available on individual equity, we can report based on our own personal experience and that of our sellers that this is true.

So, if you’ve been holding off on selling because you’re worried about how rising prices will impact your search, rest assured your equity can help. It may be just what you need to cover a large portion (if not all) of the down payment on your next home.

That’s what we did a few months ago. We used the equity in our home as down payment for our new one. So, we were able to secure where we were going before the For Sale sign ever went up in our yard.

There’s often never a “good time” to market a home: an unexpected job transfer, the loss of a loved one, or a family break up can make the decision hard and the process difficult. But sellers manage to get through it with the help of a knowledgeable professional.

If, however, the market is presenting you with an opportunity to benefit from your long-term real estate investment and make the change that you’ve been contemplating for years, why not move forward?

Let’s connect at 508-360-5664 or msennott@todayrealestate.com to talk about your possibilities. We’re happy to help.

Mari and Hank

This Labor Day, the Housing Market Remains Anything but Normal

Some talking heads and so called experts are suggesting that we’re returning to a more “normal” real estate market. They claim that we’re going back to pre-pandemic days.

But that’s just not happening. The market is still extremely vibrant as demand remains strong and housing supply is slowly returning.

The dictionary definition of normal is “usual, typical or routine.” So, using this definition, here are five housing industry metrics that prove we’re nowhere near normal.

1. Mortgage Rates

If we look at the 30-year mortgage rate chronicled by Freddie Mac, we can see the average rates by decade:

  • 1970s: 8.86%
  • 1980s: 12.7%
  • 1990s: 8.12%
  • 2000s: 6.29%
  • 2010s: 4.09%

Today, the average mortgage rate stands at 2.87%, which is very close to the historic low. But, they are predicted to slowly rise.

2. Home Price Appreciation

According to Black Knight, a housing data and analytics company, the average annual appreciation on residential real estate prices since 1995 has been 4.14%.

According to the latest forecast from the National Association of Realtors (NAR), home price appreciation nationally will hit 14.1% this year, which will be greater than any year since Black Knight began collecting this data.

On Cape Cod, the median sales price for a single family home through July is up 30.4% over last year.

3. Months’ Supply of Inventory (Homes for Sale)

According to the National Association of Realtors (NAR): a “six months supply (of homes) is associated with moderate price appreciation.”

As of the latest Existing Homes Sales Report from NAR, the current months’ supply of inventory nationally stands at 2.6. That’s less than half of a normal supply.

On Cape, the supply of available single family homes for sale is smaller. That figure stood at 1.3 months through July. A year ago, it was 3.2.

4. Days It Takes To Sell a Home

The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, the national average days on market stood at 35, according to NAR. Today, that number is cut in half and is now at 17 days.

Cumulative days on market before sale on Cape is a little higher at 22.

5. Number of Offers per Listing

According to NAR, the number of offers per listing stood at 2.2 in 2019. Today, that number nationally is double at 4.5.

There are no cumulative statistics available locally for the number of offers per listing. But we can tell you anecdotally based on our own experience and what we hear from colleagues that the days of 10 or more offers seem to have passed. In general, a “hot” property is now receiving maybe five offers.

So what does this mean for buyers and sellers?

If you have been sitting on the sidelines waiting for home prices to drop, you’re costing yourself money. Mortgage rates are predicted to rise and home prices are expected to remain at least steady.

If you have finally decided to sell, don’t expect the buyer frenzy and head scratching offers your neighbor received just a few months ago. While list price remains the starting point — the days of hoping to get close to asking are long gone — buyers seem less willing to break their bank to buy a property. But given the equity most homeowners have, a successful sale will still result in a very nice return on investment.

Curious about your options? Let’s connect at 508-568-8191 or msennott@todayrealestate.com. We’re happy to help.

Happy Labor Day!

Mari and Hank