Tag Archives: #springmarket

How to Get Top Dollar for Your House

When you’re selling any item, you want to get the greatest profit possible. That happens when there’s a strong demand and a limited supply. In the real estate market, that time is right now. If you’re thinking of selling your house this year, here are two reasons why now’s the time to do so.

1. Demand Is Very Strong This Winter

recent article in Inman News notes: “Spring, the hottest time of year for homebuyers and sellers, has started early according to economists.”

And they aren’t the only ones saying buyers are already out in full force. That claim is backed up with data released last week by ShowingTime.

The ShowingTime Showing Index tracks the average number of monthly buyer showings on active residential properties, which is a highly reliable leading indicator of current and future trends for buyer demand. The latest index reveals this December was the most active December in five years (see graph below):

Want Top Dollar for Your House? Now’s the Time To List It. | MyKCM

As the data indicates, buyers have been very busy this winter. December 2021 saw even more showings than December of 2020, which was already a stronger-than-usual winter. We know this from personal experience and that of many of our colleagues.

2. Housing Supply Is Extremely Low

Each month, realtor.com releases data on the number of active residential real estate listings (listings currently for sale). Their most recent report reveals the latest monthly number nationally is the lowest we’ve seen in any January since 2017 (see graph below):

Want Top Dollar for Your House? Now’s the Time To List It. | MyKCM

One statistic to track available listings is by calculating the current month’s supply of inventory. A months supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.

On Cape Cod, the monthly supply at the end of January was 0.7! That’s 231 homes for sale as compared to 519 a year ago.

For condos, the calculated monthly supply is 1.0. That’s available 90 units this January versus 206 in 2021.

The ratio of buyers to sellers favors homeowners right now to a greater degree than at any other time in history. Buyer demand is high and supply is low. That gives sellers an incredible opportunity.

But, buyers shouldn’t be discouraged as still record low interest rates will help them afford the homes that they’re seeking.

Curious about your options as either a buyer or seller? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re happy to answer your questions.

It’s important that you have the right information to make an educated and informed decision.

Mari and Hank

Are There Going to Be More Homes to Buy This Year?

If you’re looking for a home to purchase right now and having trouble finding one, you’re not alone. At a time like this when there are so few houses for sale, it’s normal to wonder if you’ll actually ever find one. According to the National Association of Realtors (NAR), across the country — and here on Cape Cod — inventory of available homes for sale is at an all-time low – the lowest point recorded since NAR began tracking this metric in 1982. There are, however, more homes expected to hit the market later this year. Let’s break down the three key places they’ll likely come from as 2021 continues on.

1. Homeowners Who Didn’t Sell Last Year

In 2020, many sellers decided to pause their moving plans for a number of different reasons. From health concerns about the pandemic to financial uncertainty, plenty of homeowners decided not to make their move move last year.

Now that vaccines are being distributed and there’s a light at the end of the COVID-19 tunnel, it should bring some peace of mind to many potential sellers. As Danielle Hale, Chief Economist at realtor.comnotes:

“Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”

Many of the homeowners who decided not to sell in 2020 will enter the market later this year as they begin to feel more comfortable showing their house in person, understanding their financial situation, and simply having more security in life.

2. More New Homes Will Be Built

Last year was a strong year for home builders, and according to the National Association of Home Builders (NAHB), 2021 is expected to be even better:

“For 2021, NAHB expects ongoing growth for single-family construction. It will be the first year for which total single-family construction will exceed 1 million starts since the Great Recession.”

With more houses being built in many markets around the country, homeowners looking for new homes that meet their changing needs will be able to move into their dream homes. When they sell their current houses, this will create opportunities for those looking to find a home that’s already built to do so. It sets a simple chain reaction in motion for hopeful buyers.

3. Those Impacted Financially by the Economic Crisis

Many experts don’t anticipate a large wave of foreclosures coming to the market, given the forbearance options afforded to current homeowners throughout the pandemic. Some homeowners who have been impacted economically will, however, need to move this year. There are also homeowners who didn’t take advantage of the forbearance option or were already in a foreclosure situation before the pandemic began. In those cases, homeowners may decide to sell their houses instead of going into the foreclosure process, especially given the equity in homes today. Lawrence Yun, Chief Economist at NAR, explains:

“Given the huge price gains recently, I don’t think many homes will have to go to foreclosure…I think homes will just be sold, and there will be cash left over for the seller, even in a distressed situation. So that’s a bit of a silver lining in that we don’t expect a massive sale of distressed properties.”

It looks like we’re going to have an increase in the number of homes for sale in 2021. With fears of the pandemic starting to ease, new homes being built, and more listings coming to the market prior to foreclosure, there’s hope if you’re planning to buy this year. And if you’re thinking of selling and making a move, doing so while demand for your house is high might create an outstanding move-up option for you.

…and sellers remember: as the market loosens up, competition will increase potentially making your home less valuable than it is right now.

So, let’s connect today to see how you can benefit from the opportunities available on Cape Cod whether you’re looking to buy, sell or both.

Don’t wish for it; go for it!

Mari and Hank

msennott@todayrealestate.com hsennott@todayrealestate.com