The real estate market is golden for sellers right now. However, things might change soon. Here are the details:
1. Prices are soaring. The median price of an existing home sold in September rose 14.8% compared to a year earlier. That is a new record in price growth since these numbers started being tracked in 1968. It is also an all-time high when adjusted for inflation.
2. Limited supply of homes. The inventory of homes on the market fell 19.2% annually. At the end of September, the number of available homes stood at just 1.47 million, which represented a 2.7-month supply. For reference, the normal supply is four to five months. While this imbalance between demand and supply is certainly pushing up prices, there’s another important factor…
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Things may change soon, so the time to act is now.
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3. Record-low mortgage rates. The fixed 30-year mortgage rate currently stands at a record-low 2.8%. That’s almost a whole percent lower than it was a year ago, which, at the time, was the lowest rate ever. Buyers are eager to take advantage of this situation. Such low rates can take tens of thousands of dollars off the real cost of buying a home; despite the growth in prices, homes can still be affordable.
What does this all mean to you? Well, if you were to sell your home now, you could sell it for top dollar and in the shortest amount of time. However, things might be changing soon.
For one thing, there has been a spike in the number of sellers who think it is a good time to sell right now. This measure plummeted to 16% back in March, rose steadily through the summer, and now stands at 56% today.
Also, home builder sentiment has been rising steadily for the past several months. That means we will likely soon see an increase in the completion of new homes, which can tilt the market more in favor of buyers.
That’s why I think it’s such a golden moment to sell right now. Prices are high, times-to-sell are short, and buyers are eager.
If you have any questions about selling in the current market, give me a call or send me an email today. I am constantly talking to both buyers and sellers around Oklahoma City, and if you need any help, I’m always available.