The current real estate market is experiencing a shortage of homes for sale.
Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):
This is largely due to the fact that fewer homeowners are listing their houses for sale than usual during this season. While there are various reasons contributing to this trend, one factor keeping inventory low is that some homeowners are hesitant to move when the mortgage rate on their current property is lower than what they could obtain on their next house. This is commonly known as rate lock.
A recent survey conducted by Realtor.com found that 56% of individuals who plan to sell their homes within the next year are waiting for rates to decrease. While this wait-and-see approach may be suitable for some sellers, it presents an opportunity for more motivated sellers to act now.
If your current house no longer meets your needs and you are prepared to move, it is essential not to miss this opportunity to stand out. With fewer houses available for sale, buyers will have fewer options. Therefore, you can maximize the number of potential buyers interested in your property. This is especially true if you price it appropriately, and you could receive multiple offers.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), emphasizes that inventory levels are still historically low, and as a result, multiple offers are being made on many properties.
In conclusion, if you are ready to sell your house, do not wait for the competition to emerge. Instead, work with a real estate professional to get your property on the market promptly. This way, your house can attract the most attention and receive multiple offers, giving you the best possible outcome.