2021 was an eventful year for the housing market! Inventory shortages and eager buyers meant homes received multiple competitive offers quickly, and prices climbed. According to the National Association of Realtors (NAR), a whopping 6.18 million homes were sold in the US in 2021, a 15-year high!
Last year’s seller’s market is continuing into 2022, with some new developments. The NAR reports that housing inventory is now the lowest it has been in a century, while buyer demand remains strong. Just today, mortgage rates dropped to 3.7%, providing new incentive to potential home buyers. This presents a unique opportunity for home sellers! As we know, low supply and high demand means higher values and provides leverage for sellers.
In this environment, there are more buyers than homes, so buyers are competing with each other to give you the best offer. This can mean offers over listing price, and in some cases, minimizing or even forgoing contingencies and other steps in the process to make their offer more appealing. Right now, sellers can negotiate flexible closing dates, and may even be able to arrange a leaseback to buy you time to find a new home …which you might need in this market!
The market will not stay this hot forever. Due to current events and the US inflation rate at a 40-year high, mortgage rates are projected to be volatile in 2022. Uncertainty and unprecedented events in the last 2 years have made it difficult to predict the future of the market, and this remains true today.
Today’s market conditions could not be better for sellers, and this could change at any time. If you are considering selling a home, NOW is the time to do it!