Gardner Logo Stay Up-To-Date With Everything Real Estate AUGUST
2020
Template Header
Thinking of Selling Your House? Now Is the Time!


Inventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for homes to purchase than there are sellers selling them. So, here at home in the Metro New Orleans, Greater Baton Rouge, and South Mississippi Region, the scale is tipped in favor of the sellers.


According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), total housing inventory is down 18.8% from one year ago. Inventory is well below what was available last year, and the houses that do come to the market are selling very quickly.


Sam Khater, Chief Economist at Freddie Mac notes:


“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage."

Why is inventory so low?

There are many reasons why it’s hard to find a home to buy today, stemming from an undersupply of newly constructed homes to sellers pressing pause on their moving plans due to the current health pandemic. One of the key factors making it even more challenging, however, is the amount of time current homeowners are staying in their homes. There has truly been a fundamental shift in the market that started about 10 years ago: people are staying put longer, and it’s contributing to the shortage of houses for sale.


In the 2019 Profile of Home Buyers and Sellers, NAR explained:


“In 2019, the median tenure for sellers was 10 years. After 2008, the median tenure in the home began to increase by one year each year. By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years.”


As shown in the graph below, historical data indicates that staying in a home for 5-7 years used to be the norm, until the challenging housing market. Since 2010, that length of time has trended upward, toward 9-10 years, largely due to homeowners aiming to recoup their equity:

 

 

Thankfully, with the strength the market has gained over the last 10 years, today’s homeowners are in a much better equity position. Now is a fantastic time for homeowners who are ready to make a move to break the 10-year trend and sell their houses, especially while buyer demand is so high and inventory is so low. It’s a prime time to sell.

 

 

In addition, interest rates recently dropped below 3% for the first time in FIFTY years (keep in mind rates vary daily and exceptions apply). So, there’s an opportunity for sellers to maintain a low monthly payment while benefiting from more purchasing power… In other words, getting more house for their money. Think: move-up opportunity, more square footage, or finding the features that you’re really looking for rather than doing costly renovations. With more new homes poised to enter the market this year, homeowners ready to make a move may have a golden opportunity to do so right now.

Bottom Line

There are simply not enough houses on the market today. If you’re ready to leverage your equity and sell your house, let’s connect today. It’s a great time to move while demand for homes to buy is extremely high, and with the experience and expertise of the GARDNER, REALTORS team behind me, I’ll help you create the life you love!


Thank you to Keeping Current Matters for creating this content.
Michelle Lafleur »
REALTOR
Michelle Lafleur Cell
225-207-0147
Office
225-296-0500 x7234
Contact Me
My Website
Get My App
Facebook YouTube Twitter Linked In Facebook Fan
Divider
Market Update Videos
Market Videos
Divider
Gardner Logo
Baton Rouge©
3888 S. Sherwood Forest Blvd., Suite S
Baton Rouge, LA 70816 USA
©2020 GARDNER REALTORS
Licensed in Louisiana
Sent to {EMAIL_ADDRESS}
Property Alerts Signup | Update Preferences
Realtor EHO
Copyright © 2020 GARDNER, REALTORS. If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed. Brokerage firm Licensed in Louisiana and Mississippi.
If you are having trouble viewing this email, you may see it online.