With some businesses reopening here in the Conejo Valley (sadly, some have had to shut down again) and experts indicating early signs of a much-anticipated economic recovery, more homebuyers are actively entering the housing market this summer. Today, housing is truly driving the U.S. economy forward. With so many buyers looking for homes to purchase and so few houses for sale right now, there’s a disconnect between supply and demand. This imbalance is pushing home prices upward while driving more bidding wars and multiple-offer scenarios. That’s great news for sellers. Danielle Hale, Chief Economist at realtor.com explains:
“People are surprised that prices are rising, not falling, because in the last recession home prices fell, the difference this time is the severe shortage of homes for sale…We are seeing bigger price increases with [a limited] number of homes…That is likely to lead to more competition and potentially multiple offers and bidding wars.”
According to the recent Realtors Confidence Index (RCI) survey conducted by the National Association of Realtors (NAR), this trend is growing:
“On average, there were about three offers on a home that closed in May, up from just about two in April 2020 and in May 2019 (2.3 offers).”
HousingWire also indicates:
“42% of homeowners who made a purchase during the January to May time period ended up in a bidding war, demonstrating the strong demand for homes amid low inventory.”
With more people returning to work we’ll continue to see the number of interested buyers increase. So, if you’re contemplating selling soon or in the foreseeable future, get your house on the market now. With little to no inventory for sale in the Conejo Valley, you will have little competition during the sale of your home. But, please understand, selling your home during COVID is not as simple as hanging out a For Sale sign. It’s important to ensure you have the right guidance from the start. This way, you make sure your home appeals to as many buyers as possible. Here are two tips to follow.
1. Hire a Trusted Local Expert
A trusted local real estate professional matters more than ever right now, as noted in a recent survey shared by NAR. In fact, according to respondents, 54% of buyers and 62% of sellers indicated that “Particularly during the pandemic, a real estate agent’s guidance is especially valued.”
We’re not in a normal market. We are in one of the greatest health crises our nation has ever seen. The pandemic has had a dramatic impact on the journey consumers must take to purchase a home. To successfully navigate the landscape today, you need a true expert on your side.
Plus, we are seeing an inordinate amount to multiple offers on homes so you want to be sure your Realtor is an proven expert in negotiation to get you the most for your money. Do your research on real estate agents – reading online reviews is very helpful is finding the best person for the job. Selling your home and getting the most money for your home is a job. While using your sister-in-law or cousin may be easiest, really think about who is the best person to do the job and get it done smoothly.
2. Price Your House Competitively
Yes, even in this market. When you first list your home for sale, that initial marketing time is crucial. The more you overprice, the fewer buyers will come to see it. Remember, buyers have all the data in their hands in today’s real estate markets. Combine fewer showings with optimal showing time, and you can see how a seller can miss out on the best marketing time by overpricing their home from the start.
To have the greatest results (sell in the shortest amount of time for the highest amount of money) you want to be priced correctly, right at market value. The more buyers interested in your home, the more likely to get multiple offers.
How to know the market value?
Good question! An experience Realtor® will do a Comparative Market Analysis (CMA) for you. A CMA will take into consideration these four market trends:
- Recently Sold Homes: comparable homes that have sold within the last few months
- Pending Home Sales: homes that are currently under contract but have not sold. Time on market for these homes is an important indicator of recent selling trends
- Active Listings: These listings matter only to the extent that they are your competition for buyers.
- Off-market/Withdraw/Canceled/Expired Listings: Usually, the reason homes are removed from the market is because they were priced too high. This gives us insight for our pricing strategy.
If selling your home to move to another location, downsize or upsize has been on your mind, take advantage of this great market right now. Let’s connect to determine the optimal timing and strategy to get your home sold.