Summer is now upon us in Silicon Valley, which usually means that the weather is heating up, many families are enjoying their summertime vacations, and that we’re close to reaching our annual peak in housing inventory. So, if you’re looking to sell your home this summer, what are the top considerations you should have before putting your home on the market?
#1. Strong Demand
So far the real estate market is still bustling…The latest Buyer Traffic Index from the National Association of Realtors shows that buyer demand remains strong throughout the vast majority of the country.
Motivated by lower interest rates and prices at the beginning of the year, we’ve continued to see strong buyer demand through most price points within Silicon Valley. These buyers are ready, willing, and able to purchase and, they are in the market right now!
And, even with our current increased inventory levels, when properties are priced right we’re still experiencing multiple buyers competing with each other for the same home.
#2. Less Competition – Speaking of housing inventory, even at our current peak-levels we’re still under a 6-month supply across most price-points, which is usually considered as a “balanced” housing market. This means that, just like in most of the country, there are just not enough homes for sale to satisfy the number of buyers looking to purchase.
Lower inventory levels are something that has continued to plague our housing markets. This trend has remained strong due to an increase in the length of time that homeowners have historically stayed in their homes.
Many of these homeowners were reluctant to list their home over the last couple of years for fear that they would not find a home to move in to. However, that is now finally changing as more inventory is becoming available at the higher-end. As more choices become available for these “move-up” buyers, the more inventory we’ll see become available at the entry-level market.
So if you’re thinking of selling, don’t wait until additional inventory comes to market before you to decide to sell.
#3. Now is a Great Time to Move Up
If you’re one of the many home sellers looking to make a move into a larger home, or into a better location, now is “the time” to make that move up!
We’re currently experiencing higher available inventory of homes for sale in the higher price ranges which has created a buyer’s market for “move-up” buyers. This means that if you are planning on selling an entry-level or trade-up home, it will sell quickly, AND you’ll be able to find a premium home to call your own!
#4. The Selling Process Has Become Quicker
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing and saving up a downpayment before they begin shopping for a home.
This means that most buyers will know exactly what they can afford before they even take a tour of your home…which has made the entire selling process much faster and simpler as most transactions involving purchase financing are closing within 40-days or less per a recent Origination Insights Report, by Ellie Mae.
Although generally speaking, summer seems to be a more difficult time of the year in which to sell a property as we usually experience our highest inventory levels combined with diminishing buyer traffic, this summer looks more optimistic. Interest rates are at their lowest levels in several years, buyer traffic has increased, and prices are still stable.
As always, our goal is to provide some insight into current market conditions so that you can make a more informed decision about whether the timing is right for you to sell your home this summer.