- “As the weather cools, the housing market intensity heats up for each new listing,”
- Only 3 Weeks of Housing supply remain market wide!
As the air turns cool and winter approaches, we are approaching our seasonal low in inventory. Each year, as the year closes out, potential home sellers wait until the new year to put their homes on the market. In reality, a home listed now will have higher viewership since the buyer pool has not gone down. With the pace of this market a correctly priced home offered now would probably be off the market by Thanksgiving, allowing the seller to have a quiet holiday.
Nearly half of seller’s plan to put their homes up for sale within the next six months, according to a recent Realtor.com® survey. While that’s a boon for the housing market, many of these future sellers are expecting offers above their asking price, bidding wars, and buyers to waive contingencies like inspections and appraisals.
“Buyers should be ready for high asking prices,” says George Ratiu, manager of economic research for Realtor.com. “But an increase in new sellers could mean some relief from the inventory crunch.”
These high expectations could make it harder for buyers already grappling with record-high home prices and rising mortgage interest rates.
Almost half of these sellers, 45%, want to cash in on the hot market as they expect they’ll be able to make a profit off the sale while nearly as many expect to have an offer within a week. They’re also anticipating buyers will continue forgoing contingencies to secure the deals. Just over a third are expecting to receive an all-cash offer.
Most folks considering listing their homes know it’s a seller’s market. They’ve seen their neighbors’ homes sell for unheard-of prices and heard tales of heated bidding wars. More than a third have researched the value of their homes and others in their neighborhoods. Some have even begun investing to make their homes presentable to potential buyers.
There is a bright spot for cash-strapped buyers. More than three-quarters of sellers, 77%, say they would accept a lower offer to close faster.
Why are home sellers getting ready to enter the market?
Most sellers are also buyers who are going to need places to live. That means they’re also going to have to brave the fierce competition in the market.
They’re entering the fray because they say their home no longer meets their family’s needs, 37%, and because they want to be closer to family and friends, 32%. After spending more time than ever at home due to the COVID-19 pandemic, 33% decided they want different home features.
Others who no longer want to commute to their jobs every day are looking for a home with an office space, making up about 19% of sellers. Another 19% no longer need to live near their jobs. That means they can live just about anywhere they choose.
However, they’re realistic about just how tough the market is right now. While just under a third of seller’s plan to purchase a new home, 19% of sellers plan to move in with family after the sale and 11% are expecting to rent. Meanwhile, 29% plan to rent their homes back from their buyers after the sale, likely to give them time to find their next homes.
The number of new homes for sale in King County plunged from September to October dropping over 23% and those listings were quickly snapped up before the month was out, putting the squeeze on buyers who are still shopping.