There’s no doubt that 2021 is the year of the seller when it comes to the Rochester and Finger Lakes housing markets. If you’re a homeowner thinking of moving to better suit your changing needs, now is the perfect time to sell your house. Low mortgage rates are in your favor when you’re ready to purchase your dream home, and high buyer demand may give you the leverage you need to negotiate the best contract terms on the sale of your house. It is a very competitive market in our area for buyers and sellers alike. Buyers need to write the right offer to the sellers – presenting the right price and terms for the sale. Sellers need to be aware of what a realistic sale price is for their home, without leaving any “money on the table”. This is not the right market to buy or sell without a real estate professional on your side.
Here’s a look at what’s driving this sellers’ advantage and why there’s so much opportunity for homeowners who are ready to move this season.
1. Historically Low Inventory
The National Association of Realtors (NAR) explains:
“Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory . . . Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.” Even with a slight rise in the number of houses for sale this spring, inventory remains near an all-time low.
High buyer interest is creating a major imbalance between supply and demand, but as the small uptick in inventory shows, sellers are beginning to reenter the market. As your agent, we’ll work with you to sell your house now, enabling you to take advantage of buyer demand and get the most attention for your house – before more listings come to the market later this year.
2. Frequent Bidding Wars
As a result of the supply and demand imbalance, homebuyers are entering bidding wars at an accelerating rate. NAR reports the average number of bids received on the most recently closed sales is 4.8 offers. This number has doubled since the first quarter of 2020.
As buyers face increasingly tough competition while searching for a home, they’re more likely to be inclined to be flexible and generous (sometimes overly!) in their negotiations. This gives a seller the opportunity to choose the best buyer for their needs and be selective about things like time to close, contingencies, renovations, and more. As a seller, it’s important that we work together to make sure that your desire to accept the “best offer possible” does not leave you heartbroken down the line when your neighbor’s home – which is a lot like yours – sells for thousands of dollars more. Working with us is the best way to determine how to navigate the negotiation process when selling your house.
3. Days on the Market
In today’s market, sellers aren’t waiting very long to find a buyer for their house, either. NAR reports:
“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. 83% of the homes sold in March 2021 were on the market for less than a month.”
NAR Chief Economist Lawrence Yun explains:
“The sales for March would have been measurably higher, had there been more inventory…Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”
If you’re thinking about moving, these three graphs clearly show that it’s a great time to sell your house. It’s a very competitive market out there and not one you should approach without a REALTOR in your corner. Contact us today and we can talk about your timeline and needs.