Inventory has been tight for the last few years. Homeowners are reluctant to sell because they know that they have only a few choices. What if they sell and then can’t find a home to buy? This may be about to change! After a bout of hesitation at the start of the year, more homeowners are starting to consider selling. This will have a positive impact on inventory – and then will help to manage sale prices.
According to the latest National Association of REALTORS® quarterly report, 46 percent of homeowners are optimistic about selling, climbing from 37 percent in the first quarter of the year. Hopefully this will increase inventory!
Why the change of heart on the part of sellers? Appreciation is softening, and homeowners know it, explains Lawrence Yun, chief economist at NAR.
“With home-price appreciation slowing, home sellers understand that the days of large price gains from holding an extra year are over,” Yun says. In other words, if you are not going to make SIGNIFICANTLY more money by waiting another year – and it is possible to find your dream home thanks to increased inventory – WHAT ARE YOU WAITING FOR?
According to NAR statistics, the median national price is still going up – but it is going up more slowly. This year the median national sale price is up 3.6 percent year-over-year—a departure from 5.3 percent the prior year. Sixty-three percent of homeowners believe home prices have risen, according to NAR’s quarterly report, and 49 percent expect them to keep rising.
On the buy side, confidence is strengthening, as well. Sixty-five percent of homebuyers are optimistic about purchasing, with 38 percent “strongly” believing now is an ideal time. In contrast, 35 percent believe now is not a good time—and 27 percent believe it is “very” difficult to get a mortgage.
The economy is a factor. According to the report, 55 percent believe the economy is improving—a belief common to $100,000-or-more earners and residents in rural spots.
“Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters,” says Yun.
Notably, Gen X’s economy positivity ticked up, from 50 percent in the first quarter to 53 percent this quarter.
“Many in the Generation X population find themselves needing to purchase multigenerational homes,” Yun says. “Also, they may be feeling financial stress from caring for aging parents and children of all ages. Nonetheless, they have an optimistic outlook about the future.”
NAR based its findings on 2,708 responses.
If you would like to contribute to the increase in inventory by putting your home on the market – Lets talk! Give us a call at 240-401-5577 or email us at Lise@lisehowe.com!