By Scott Gaertner, Associate Broker
When you’re selling any item, you usually want to sell it for the greatest profit possible. That happens when there’s a strong demand and a limited supply for that item. 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 is the time to list.
1. Demand Is Very Strong This Winter.
In the real estate industry, spring (which technically doesn’t start until March 20), is traditionally the “hottest” time of the year for home buyers and sellers. But, this traditionally busy season started early this year, according to the “Inman News,” a leading real estate news source for real estate agents. “Home shopping season appears to already be in full swing,” cites a recent article.
That claim is backed up with recent data released 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 ShowingTime index reveals last December was the most active December in five years.
As the data indicates, buyers are very active this winter. Last December saw even more showings than December of 2020, which was already a stronger than usual winter. Those are national statistics. This trend is much more pronounced in Scottsdale North due to the seasonality of our winter visitors. And remember – you want to sell something when there’s a strong demand for that item. That time is right now.
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 is the lowest we’ve seen in any January since 2017. But, in Scottsdale North, we have the lowest number of active listings ever.
And don’t forget, the best time to sell an item is when there’s a limited supply of it available. Supply has never been more limited than it is right now.
Even Though Supply Is at a Historic Low, Home Sales Are at a 15-Year High
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), existing home sales totaled 6.12 million in 2021 – the highest annual level since 2006. This indicates that the market is hot, and homeowners are in a fantastic position to sell now, while demand is high.
NAR also reports available listings by calculating the current months’ supply of inventory. “Months’ supply of inventory 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.”
The current months’ supply is 1.8, the lowest ever reported. Here in Scottsdale North, the market is so hot that we must go to “Days’ Supply of Inventory” rather than “Months’ Supply of Inventory.”
Below is an example chart of five recent days of supply in Scottsdale North.
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. If you’re selling your home, that gives sellers like you an incredible opportunity. Today’s buyers know they need to be flexible negotiators that make very competitive offers, so here are a few areas that could tip in your favor when your house goes on the market:
• An above market sales price.
• Flexible closing date.
• Few to no home repair requests.
• The ability to stay in your home until you find another.
• Minimal offer contingencies.
• Minimal to no showings.
Scottsdale North’s best-selling days are before the summer heat sets in while the winter visitors are still here. If you agree the best time to sell anything is when demand is high and supply is low, let’s connect to begin discussing the process of listing your house today. You will be shocked when I tell you what your home is worth. Call me at 480-634-5000 to connect.
Scott Gaertner is an Associate Broker with Keller Williams Northeast, who for the past 35+ years has helped more people find their lifestyle niche in the Scottsdale North area than anyone else. He also contributes his thoughts on the real estate market and lifestyle interests in the area and is the creator of ConnectingScottsdaleNorth.com. For additional info, visit ScottGaertnerGroup.com or call 480-634-5000.