Missing! Buyers want your home. Inventory is so low, there are likely multiple buyers looking for a home like yours right now.
In 2019, there were 1.3 million homes on the market in any given month, on average. By 2021, the number of active listings had fallen by 57%, to 540,000 on average, according to NerdWallet’s analysis of Realtor.com data. There was already a home shortage before the pandemic, but COVID-19 took a bad situation and made it worse. Now, homes are selling within days, not weeks or months, and commanding multiple competitive offers. That demand shows few signs of letting up.
Nearly 26 million Americans say they plan to buy a home this year, according to the Home Buyer Report. That number is unrealistic — typically 5 million to 6 million homes are sold each year — but it does indicate the flood of buyers isn’t likely to subside.
Selling now may mean a bigger profit
High demand in the face of low supply has made for record high prices. This means you’re more likely to pay off your current mortgage and walk away with a profit than you would’ve been just a few years ago.
Homes are also being listed at higher prices, and selling at or above asking price. In fact, buyers typically paid 100% of the list price in 2021, and 29% paid more than list price. While the sales price represents your ultimate financial benefit, getting offers over what you expect brings added excitement to the transaction.
Typical sale prices grew from $270,000 on average in 2019, before the pandemic, to $344,000 in 2021, according to data from the National Association of Realtors. And in some places, they’ve grown even more.
About three-quarters (74%) of sellers did not have to reduce their asking price at all in 2021, compared with 60% in 2019 and 39% a decade ago in 2011, according to NerdWallet’s analysis. The analysis covered 10 years of data from the NAR’s annual Profile of Home Buyers and Sellers report.
Closing day may come more quickly, with fewer sacrifices
Buying or selling a home is never a stress-free transaction, but selling now is far easier than in recent years. Not only do you stand to have multiple competitive offers, but you’re also more likely to cruise through closing with fewer frustrations.