Optimistic Summer Housing Market Heats Up
Today's market is a seller's market. But despite the best conditions in years, fewer homeowners are listing their homes for sale. That's led to a lower-than-normal number of existing homes available on the market. It's also led to surging new home sales.
According to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, March saw a 20.7 percent increase over the previous month. That far exceeded economists' expectations and pushed sales almost 67 percent higher than last year - when the coronavirus had buyers temporarily sidelined. It's encouraging news, especially when combined with recent data showing both building permits and housing starts up from the month before.
The new home market is booming and, if builders can keep up with demand, it should help relieve upward pressure on home prices. It should also give current homeowners more options and some motivation to sell. As the economy continues to improve and more people get vaccinated, more sellers may finally be in sight.
The Home Purchase Sentiment Index (HPSI) by Fannie Mae recently noted the percentage of consumer respondents who say it’s a good time to sell a home increased from 61% to 67%. Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, indicates:
“Consumer positivity regarding home-selling conditions nearly matched its all-time high.” (See graph below):
“The results of a realtor.com survey . . . showed that one-in-ten homeowners plans to sell this year, with 63 percent of those, looking to list in the next 6 months. Just as encouragingly, close to two-thirds of sellers plan to sell their homes at prices under $350,000, which would offer a tremendous boost to affordable housing for first-time buyers.”
If you’re considering selling your house, don’t wait for more competition to pop up in your neighborhood. Let’s connect today to explore the benefits of selling your house now before more homes come to the market.