Housing inventory shortages have been a consistent headline for the real estate market for several years now. Add in a global pandemic that resulted in would-be sellers deciding not to list their homes for sale and things have gone from bad to worse. With this said, a recent survey from Realtor.com may offer some hope for frustrated buyers.
According to the survey, approximately 1 in 10 homeowners say they plan to list their home for sale this year. Furthermore, 26% of homeowners say they plan to list their home for sale within 3 years. Of the homeowners most likely to sell, the majority of them would be selling homes valued at under $350,000. This is particularly welcomed news given that this price range has seen some considerable challenges in recent years. According to economists from Realtor.com, a typical year sees about 8% of the nation’s homes hitting the market. The forecast for this year is that we should see about 25% more homes hitting the market. Aside from price appreciation, many sellers are feeling more comfortable with having showings now that we have seen a widespread roll out of the COVID-19 vaccines.
Reasons not to sell
Although this survey showed an increased interest in homeowners selling their homes, it also highlighted their primary concerns in doing so. The most common concerns cited were:
- Not sure where they want to move
- Concerned about the current economic climate
- Worried about the logistics of buying and selling at the same time
- Unsure about showing a home during the pandemic
Although nobody has a crystal ball for the future of the real estate market, most agree that this is a great time to sell. Of course, the biggest challenge has been finding a subsequent home to buy. In South Florida, some are opting to sell now and are moving to less expensive markets further up the coast or in central or west Florida. Another segment of the population that may be more likely to sell at these prices are couples looking to downsize now that their children have moved out of the house.
A key economic factor that was not directly addressed in this survey is inflation. If inflation levels continue to rise, then we should see continued price increases for homes. On the flip side, if inflation is controlled then we should see more modest increases in home prices.
Are you ready to list your property for sale in South Florida? Let us put our proven marketing strategies to work for you. Contact Live South Florida Realty, Inc. today!