If you’re considering selling your house in 2022, you have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope for solid demand for the item and a limited supply. That maximizes your leverage when you’re negotiating the sale. Home sellers are in that exact situation right now. Here’s why.
Demand Is Very Strong.
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021. This was the largest number of home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:
“Sales for the entire year finished strong, reaching the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”
Demand isn’t expected to weaken this year, either. In addition, the Mortgage Finance Forecast, published last week by the Mortgage Bankers’ Association (MBA), calls for existing home sales to reach 6.4 million homes this year.
Supply Is Very Limited.
The exact sales report from NAR also reveals that the month’s inventory supply just hit the lowest number of the century. It notes:
“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”
The reality is that inventory decreases every year in December. That’s just how the typical seasonal trend goes in Chicago real estate. However, the following graph emphasizes how this December was lower than any other December going back to 1999.
Right Now, Sellers Have Maximum Leverage.
As mentioned above, when there’s strong demand for an item and a limited supply, the seller has maximum leverage in the negotiation. For homeowners thinking about selling, there may never be a better time than now. While demand is this high and inventory is this low, you’ll have leverage in all aspects of the sale of your house.
Today’s buyers know they need to be flexible negotiators who make very competitive offers, so here are a few areas that could tip in your favor when your house goes on the market:
- Competitive sales price
- Flexible closing date
- Potential for a leaseback to allow you more time to find a home
- Minimal offer contingencies
Bottom Line.
If you’re considering selling your house this year, now is the optimal time to list it. Let’s connect with real estate professionals in Chicago at KM Realty Group LLC to discuss how to put your house on the market today.
