by Jennifer Hamilton, director of sales, Berkshire Hathaway HomeServices Coastal Real Estate
Have you thought about selling your house? If the answer is yes, then there is no better time to put it on the market than now.
Spring has always been a popular time to sell, but the continued demand for homes in our area, coupled with limited inventory, has driven home prices up even higher. Many sellers receive multiple offers, oftentimes driving the sales prices above asking price.
Long gone are the days of asking 5% under asking price, negotiating with sellers to pay closing costs, with many even foregoing inspections and appraisals. With such strong activity, by the time a property sale closes, the market has already adjusted to a higher price than even recent sales suggest. Though such markets can create stress and frustration for many prospective homebuyers who frequently have to submit offers on multiple properties before they are able to secure a purchase, home sellers in our market are seeing a sizable return on their investment.
So, If you have been putting your move on the back-burner, waiting for the perfect time to sell, you should know your golden window of opportunity is here and now. If you are able to get your house ready for the market quickly, here is what you can expect to see.
You Should See More Buyer Activity
Buyer demand is expected to remain higher than in previous years. As of March 2022, home prices had risen 16.8% since March 2021, with pending sales in our market up 6.9% and closed sales up 17.9% since this same time last year. This is a direct result of increased competition among buyers, ultimately leading to a bidding war over houses. Compound that with mortgage rates increasing to 4.67%, the highest since November 2018, and chances are good that this analysis is right. As interest rates rise, experts say buyers often hurry to make their purchase before rates climb higher. As Nadia Evangelou, senior economist and director of forecasting at the National Association of Realtors (NAR) says:
“Buyers are rushing to lock in lower rates as the outlook is for even higher mortgage rates in the following months.”
Your House Is Expected to Sell Quickly
It’s no secret that the Grand Strand is a great place to call home. For more than ten years now, homes in our market have been selling faster every year. The popularity of our area along with a global pandemic that caused many to reevaluate their goals and life preferences bred a perfect real estate storm.
Homes in our market are selling on average in less than 101 days, from listing to closing; a decrease of 22.9% compared to last March 2021. Many more buyers are looking for luxury, smart technology, and lifestyle when shopping for a home. This is evident in the 79.4% increase in closed sales for homes priced at $400,000 or higher, seeing the largest closed sales hike than any other price point. No matter what price point your home is at, I promise you there is a buyer or ten looking for it.
Your House Will Be in the Spotlight
Since the beginning of the year, the number of homes available for sale has been at or near record lows. As of March 2022, our entire market had a mere 1.3 month’s supply of homes for sale. A market that is competitive for buyers and sellers occurs when there is at least a 5-6 month supply of homes on the market. In our current situation, if every home that is currently on the market sold, we would run out of inventory in less than 40 days.
Inventory of Homes & Condos for Sale by Price Range as of March 2022:
- Under $200,000…………………………………….0.9 month’s supply of homes down 79.1%
- Under $300,000…………………………………….1.0 month’s supply of homes down 77.3%
- Under $400,000…………………………………….1.9 month’s supply of homes down 67.2%
- Under $500,000…………………………………….2.1 month’s supply of homes down 61.8%
- Over $500,000…………………………………….1.3 month’s supply of homes down 63.9%
If you list when inventory is low, your house will be the center of attention for many eager buyers searching to find their home. Buyers are ready to buy, now ask yourself, are you ready to sell?