Why Waiting To Sell Your House Could Cost You Money
With the holiday season behind us, a lot of people are making resolutions and thinking about their goals for the New Year. When it comes to real estate, many homeowners who plan to sell in 2022 are trying to decide if they should put their home on the market now or if they should wait until later in the year. Before you decide, you should know why waiting to sell your home could cost you a small fortune.
Historically speaking, about 40% of home sales occur between April and July, so you may think it makes sense to wait for the spring buying season to put your house on the market. But, as you know, the last couple of years have been far from the norm. So here are a few reasons to list your home now rather than waiting until the spring.
First, buyers are looking right now, and they’re ready to purchase. The ShowingTime Index reports data from more than 6 million property showings scheduled across the country each month. In other words, it’s a gauge of how many buyers are actively looking at homes at any given time. The latest index reveals that buyers are still very active in the market. Comparing the current numbers to previous years, we’re seeing a huge increase in the number of showings.
It’s also worth noting that buyers who are out shopping this time of year are more serious about buying a home. Freddie Mac touched on this recently by saying:
“The buyers who are willing to house-hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”
And that theory is proving to be true, based on the number of buyers who have put a home under contract. The National Association of Realtors publishes a monthly Pending Home Sales Index which measures housing contract activity. It’s based on signed contracts for existing preoperties. The latest index shows:
“…housing demand continues to be high. . . . Homes placed on the market for sale go from ‘listed status’ to ‘under contract’ is less than 18 days.”
Of course, these are national numbers. Here in Daytona Beach, we’re seeing a median time to contract of about 10 days. Regardless, the takeaway for you should be: buyers are in the market and they’re ready to purchase.
The next reason why you shouldn’t wait to sell your home? New construction will be your competition this spring. Building permits for new homes in Volusia County jumped 22% in 2020, but many of those homes have yet to be completed because of labor shortages and supply chain issues brought on by the pandemic. We expect to see a lot of those homes completed this year. We’re already seeing more buyers shopping for new construction because of inventory shortages, so you don’t want to wait to sell your home and have even more competition later in the year.
Another reason to consider selling now is if you plan to move up into a more expensive home. Prices are projected to continue appreciating by around 5% over the next 12 months. While that’s great news for your current home, you have to consider that it will cost you a lot more to buy a new home, both in down payment and mortgage payments, if you wait. Mortgage rates are expected to rise throughout the year, and while you can still lock in a 30-year rate in the lows 3’s, we’re not sure for how long.
Bottom line, if you’ve been debating whether or not to sell your house or are curious about the market conditions in Volusia County, let’s connect, so you have expert advice on the best time to put your house on the market.