In school we all learned the?Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise.
SUPPLY
The?National Association of Realtors (NAR)?recently?reported?that the inventory of homes for sale stands at a 4.8-month supply. This is significantly lower than the six months inventory necessary for a normal market.
DEMAND
Every month NAR reports on the amount of buyers that are actually out in the market looking for homes, or foot traffic. As seen in the graph below, buyer demand this year has significantly surpassed the levels reached in 2014.
Many buyers are being confronted with a very competitive market in which they must compete with other buyers for their dream home?(if they even are able to find a home they wish to purchase).?
Listing your house for sale now will allow you to capitalize on the shortage of homes for sale in the market, which will translate into a better pricing situation.
HOME EQUITY
Many homeowners underestimate the amount of equity they currently have in their home. According to a recent Fannie Mae study, 37 percent of homeowners believe that they have more than 20 percent equity in their home.?In reality?69 percent of homeowners actually do.
Many homeowners who are undervaluing their home equity may feel trapped in their current home, which may be contributing to the lack of inventory in the market.
Bottom Line
If you are debating selling your home this year, meet with a local real estate professional that can evaluate the equity you have in your home and the opportunities available in your market.?For more information, please contact The Olear Team today!