Something’s different about our market so far in 2020, and here’s why it’s great news for sellers.
When’s the best time to list your home for maximum value? Historically, in a normal Northwest area market, you’d be looking at March through August. Those six are, statistically speaking, the months in which you will get more money and quicker sales.
So far, as of January 2020, that has actually changed. We’re seeing things happen that we don’t see traditionally until late spring. Here’s what I mean: Anything under that $600,000 range (of course, this depends on the area because real estate is hyperlocal) is receiving multiple offers right now. There are two reasons why I think this is the case:
1. Lack of supply. At this time last year, we had 3.3 months of inventory, whereas right now, we’re below two months—from Salem to Vancouver, Washington.
2. Interest rates dropped. Remember: We are about 1% different year over year in interest rates, and that affects buyers a lot. Let’s say you could afford a $400,000 property with your mortgage payment. With a 1% decrease, you’ve upped your purchasing power to $440,000.
That’s why I think we’ve been able to see massive exposure on our listings. Though the market is roughly the same as it was last year, we’re up 29%, and that growth is due to the fact that we take a lot of listings—we’re a listings-based organization here at the Nick Shivers Team.
My advice to sellers? Don’t wait until the ‘best’ time of year; right now, you don’t have any competition. Historically, yes, more people will list their homes in the six months mentioned above, and yes, there will be more active buyers then, too. However, potential buyer traffic now compared to this time last year is up 22%.
Foot traffic and online views both indicate that the buyers are out already. So if you’re thinking about selling, beat your competition and reach out to us via phone or email soon. If you have any questions about this or other real estate-related topics, we’d also love to hear from you.