NAR Reports – Now Is a Great Time to Sell
Recent reports issued by the National Association of Realtors (NAR) demonstrate now is a smart time to sell your house.
THE PENDING HOME SALES REPORT (click here to view)
Per the report, pending home sales (homes that are under contract) are up 2.4% over last year, and have increased year-over-year now for 22 of the last 25 consecutive months.
Takeaway: Demand for housing will continue throughout the end of 2016 and into 2017. The seasonal slowdown that often occurs during the winter months did not occur last winter and shows no signs of happening this year.
THE EXISTING HOME SALES REPORT (click here to view)
The most important data point revealed in the report was not sales, but the inventory of homes for sale (supply).
- Total housing inventory rose 1.5% to 2.04 million homes available for sale
- This represents a 4.5-month supply at the current sales pace
- Unsold inventory is 6.8% lower than a year ago, marking the 16th consecutive month with year-over-year declines
When there is less than a 6-month supply of inventory available, it is considered a seller’s market and homes will appreciate. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and one should expect depreciation in home values.
Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. Prices will continue to rise until a sizable supply of homes come onto the market.
Real Estate Bottom Line
If you are considering selling your home, now may be a great time. It is still a seller’s market – don’t wait until the market turns.