Many homeowners who plan to sell in 2022 may think the wise thing
to do is to wait for the spring buying market since historically about 40 percent
of home sales occur between April and July. However, this year’s
expected to be much different than the norm. Here are five reasons to
list your house now rather than waiting until the spring.
1. Buyers Are Looking Right Now, and They’re Ready To Purchase
The ShowingTime Showing Index reports data from more than
six million property showings scheduled across the country each month.
In other words, it’s a gauge of how many buyers are out looking at homes
at the current time.
The latest index, which covers November showings,
reveals that buyers are still very active in the market. Comparing this
November’s numbers to previous years, this graph shows that the index
is higher than last year and much higher than the three years prior to
the pandemic. Clearly, there’s an influx of buyers searching for your
Also, at this time of year, only those purchasers who are serious
about buying a home will be in the market. You and your loved ones won’t
be inconvenienced by casual searchers. Freddie Mac addresses this in a recent blog:
“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 right now based on the number
of buyers who have put a home under contract to purchase. The National Association of Realtors (NAR) publishes a monthly Pending Home Sales Index
which measures housing contract activity. It’s based on signed real
estate contracts for existing single-family homes, condos, and co-ops.
The latest index shows:
continues to be high. . . . Homes placed on the market for sale go from
‘listed status’ to ‘under contract’ in approximately 18 days.”
Comparing the index to previous Novembers, while it’s slightly below
November 2020 (when sales were pushed to later in the year because of
the pandemic), it’s well above the previous three years.
The takeaway for you: There are purchasers in the market, and they’re ready and willing to buy.
2. Other Sellers Plan To List Earlier This Year
The law of supply and demand tells us that if you want the best price possible and to negotiate your ideal contract terms, put your house on the market when there’s strong demand and less competition.
A recent study by realtor.com
reveals that, unlike in previous years, sellers plan to list their
homes this winter instead of waiting until spring or summer. The study
shows that 65% of sellers who plan to sell in 2022 have either already
listed their home (19%) or are planning to put it on the market this
Again, if you’re looking for the best price and the ability to best
negotiate the other terms of the sale of your house, listing before this
competition hits the market makes sense.
3. Newly Constructed Homes Will Be Your Competition in the Spring
In 2020, there were over 979,000
new single-family housing units authorized by building permits. Many of
those homes have yet to be built because of labor shortages and supply
chain bottlenecks brought on by the pandemic. They will, however, be
completed in 2022. That will create additional competition when you sell
your house. Beating these newly constructed homes to the market is
something you should consider to ensure your house gets as much
attention from interested buyers as possible.
4. There Will Never Be a Better Time To Move-Up
If you’re moving into a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 5%
over the next 12 months. That means it will cost you more (both in down
payment and mortgage payment) if you wait. You can also lock in your
30-year housing expense with a mortgage rate in the low 3’s right now. If you’re thinking of selling in 2022, you may want to do it now instead of waiting, as mortgage rates are forecast to rise throughout the year.
5. It May Be Time for You To Make a Change
Consider why you’re thinking of selling in the first place and
determine whether it’s worth waiting. Is waiting more important than
being closer to your loved ones now? Is waiting more important than your
health? Is waiting more important than having the space you truly need?
Only you know the answers to those questions. Take time to think
about your goals and priorities as we move into 2022 and consider what’s
most important to act on now.
If you’ve been debating whether or not to sell your house and are
curious about market conditions in your area, let’s connect so you have
expert advice on the best time to put your house on the market.