It's no secret that the real estate market is on the rise. In fact, according to recent reports, it's experiencing its strongest growth in years. If you're thinking of selling your home, now is definitely the time to do it. Here are the top 5 reasons why.

Reason #1: Low inventory

If you know about the concept of supply and demand, you'd know that when something is in short supply, its value tends to increase. The July 2022 REALTORS® Confidence Index Survey showed that low inventory in the homes for sale has been affecting transactions, noting that 39% of homes sold above list price. This puts sellers in a position of advantage because as the number of homes for sale is low, the value of those homes for sale will swell. You could also take note that Historical NAR data shows that housing prices appreciate by 5% when supply falls below 6 months. That means that you could expect the median prices for housing to be higher.

Reason #2: Competitive contract activity

When you list your home, not only do you just want it to sell, but ideally, you want it going for a competitive price. The same REALTORS® Confidence Index Survey notes that contract activity has been and remains competitive. What does this mean? Well, for starters, 24% of buyers in July were all-cash sales, similar to June at 25%. It also means that 27% of buyers waived the inspection and the appraisal contingencies, meaning buyers are anxious to finalize the sale and are even willing to cut some corners to pick up the pace.

Reason #3: Strong demand for housing

Again, based on the responses reported in the REALTORS® Confidence Index Survey, buyer conditions were rated “stable” to “very strong” in all states. In the midst of low interest rates, rental appreciation, an improving job market, and general confidence in the economy, the demand for buying houses is strong right now. There has also been a reported decrease in the expected number of days it takes to sell homes. In August 2022, properties spent an average of just 15 days on the market, meaning that sellers are driving the market.

Reason #4: Supply chain issues

The supply chain issues are having a strong impact on the real estate market. The reason for this is twofold: first, because countless construction projects have been delayed by the COVID-19 pandemic, and second, because material costs have been rising rapidly in recent months. This means that there is currently a shortage of existing homes on the market, and as we’ve mentioned when supply is low, demand is high. But although now is a good time to sell, this could soon change. Once development projects get back on track and the supply chain issues are sorted there is projected to be a steady increase in inventory which would cause sale rates to slow. So it’s best to start the process now, rather than wait.

Reason #5: Renting is unaffordable

Rent has become unaffordable for many American households in recent years. According to the research done at rent.com, the average rent in the US has climbed to $1,721, which is well above 30% of the national median income. Additionally, with rent outpacing wage growth, it is becoming increasingly difficult for low- and moderate-income families to find affordable rentals. This phenomenon has pushed more people to buy, hence the rise in competitive contract activity.

If you're on the fence about selling your house, now is the time to do it! There are a number of reasons why listing your sooner, is better than later. Take advantage of the current market and get ahead of the competition - If you wait to list your house until later in the year, you'll be up against a lot of other sellers. By listing now, you'll have less competition and a better chance of selling quickly and for top dollar. This is a big decision and it’s best to make it with the guidance of a professional. Get in touch with us at Team Horton Realty for more information about why now is the time to sell your home.