The answer to thequestion of whether it’s a good time to sell your home this summer, the answer is an unequivocal YES! And there are three important reasons why the answer is yes even though many prospective home sellers have voiced concern that their homes won’t sell because of the pandemic we’ve been experiencing and the resulting economic recession. And while it’s reasonable to be concerned with everything happening around us, it’s a great time to list and sell your home because:
- Low inventory of homes. Inventory of homes is at an all-time low, nationally and also in the Charlotte region. The inventory of homes for sale in Charlotte region in June dropped 46.7% versus June 2019. The months supply of homes is also at an all-time low at 1.3 months, down 50% from June 2019. New listings coming on the market were down 8.5% in June 2020 versus the same month one year ago. The best time to sell your home is when there is the least amount of competition in the marketplace.
- Buyer demand for homes is high due to low interest rates. Interest rates are at an all time low, as well. Home buyers want to take advantage of the low rates and lock in their cost of housing at these low rates for years to come. The latest Existing Home Sales Report published by the National Association of Realtors (NAR) revealed that 340,000 single-family homes sold in this country last month. The NAR’s most recent Pending Sales Report (homes going into contract) surpassed last month’s number by over 44%, which far exceeded analysts’ projections of 15%. In the Charlotte region, pending sales were up 26.8% in June year-over-year. June 2020 showing activity for Charlotte region homes was up over June 2019, reflecting pent-up demand by prospective home buyers.
- Home prices continue to increase. The combination of all time lows in housing inventory for sale and pent-up demand for homes by buyers has resulted in a continuing increase in home prices. In the Charlotte region, average listing prices were up 10.9% in June 2020 year-over-year. Average sale prices were up 3.5% in June 2020 year-over year, while median sale prices increased 7.5% year-over-year in June. Charlotte region has also seen the return of bidding wars in all price ranges, which drive home prices up as well, as bidding wars guarantee houses sell quickly and often at over the listing price. For home sellers this means more money in their pockets. Days on market were also down in June 2020 versus June 2019 in the Charlotte region.
One can actually argue that since May we have seen a historic rebound for the housing sector. In May 2020, pending home sales increased by 44.3%, registering the highest month-over-month gain in the index since the National Association of Realtors (NAR) began tracking this metric in January 2001. Until home sellers regain their confidence to list their homes, housing inventory will continue to be constrained with buyer demand for homes exceeding supply. It’s a great time to sell your home!
Are you thinking about selling your home to up-size, down-size or to relocate to another area? Are you wondering about your home’s value? We’d be delighted to provide a FREE, no obligation home equity analysis for your Charlotte area home. We’re never more than a call, text or email away!
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