Homeowners, I’m speaking to you – this may be is perhaps the best time to sell your home, EVER.
Two years ago, the average price of a home in the U.S. was $318,400. Today the average price is $404,700. That’s a whopping increase of over 27%. And, it’s the first time the average home price is north of $400k.
Take a look at this astounding chart…
These numbers are similar when I look at the greater Palm Beach county market. In the last year, home prices are up over 17%, and more than 29% over the last two years.
Here’s why…
Two years ago today there were over 53,000 home for sale in Palm Beach county. One year ago this week there were 41,720 homes available. As of 9am this morning, there are 21,381 homes available for sale.
That’s almost a 60% crash in inventory in two years.
To share how this plays out as a realtor, last weekend I had an “appointment” to show the last available home in Seagate Country Club. It was a stunning home listed at $1.25 million. But, when we arrived, there were already 27 folks in the home – prospective buyers, realtors, the owner. By the time we left, we saw 12 more folks walk in. It was like going to the Total Wine to buy champagne on New Years Eve.
Bottom line: there is “nothing” out there to sell.
Will Next Year Be A Better Time To Sell Your Home?
As the saying goes, “there’s never a better time than now to get something done.” This saying has never been more important if you’re a homeowner and want to sell your home.
The real estate market fundamentals are just too strong to ignore. Mortgage rates are still hovering at 3%… as you can see above, inventory is still making lower historic lows… prices are rising at one of the fastest paces in recent history… and we think this won’t last forever. So, if you want to sell your home, all odds are in your favor to maximize your profits now.
I can site hundreds of types of markets that either went up or down in such an impressive fashion. The dot com years went vertical, then fell. Housing in the early millennium went up, then dropped. Just recently the price of lumber went up almost 400% before falling by 50% – all in a one year time span.
A lot of you bought your home 5, 7, 10 years ago after the last real estate market meltdown. If that’s you, congratulations – you’re sitting on a war chest of equity. You bought “low.” And if you ever wanted to sell your home, now is the time to sell “high.” It’s a classic Warren Buffett investment strategy (Warren is one of the most successful investors of all time).
But some of you may be prone to remorse by making such a decision. If that’s you, read this essay where I help you work through those thoughts.
Next year may bring more of the same real estate market (I lean this way. I’ve said over and over that this market will last longer than most think due to solid fundamentals). But, you may be of the mindset that a correction is about to hit us. If that’s you, you must prepare to sell your home now.
If you ever had a thought about when to sell your home, now is the time to put it into action.
You see, it may take a few more years for enough inventory to hit the market to meet buyer demand. So, dear homeowners… you hold the key in today’s market. And you can profit from it, too.
If you’ve been whispering about the desire to sell your home… or know of a friend thinking the same with their home… please think of me to help.
I’m grateful for, and accepting ALL referrals.
