Black Label looks at the Spring selling season recently releasing its market evaluations. From Massachusetts to California, it continues to be a seller’s market. According to realtor.com’s Weekly Housing Trends for the week ended March 20 year-over-year median listing prices were up more than 15%. Strong buyer activity combined with low inventory is partially responsible for that double-digit increase.
The age groups choosing to sell in the next year are dominated by younger homeowners. Consider that homeowners in the 18-34 and 35-44 demographic groups (39% of respondents) plan to sell in the next 12 months. Compare that to only 19% of homeowners in the 45-54 age range. When doing this research, what surprised me was that younger homeowners are more likely to sell in the next 12 months. They were also more likely than some of their older counterparts to have concerns about the home selling process being intimidating, not knowing what their home is worth, and not knowing where to start.
Another surprising finding was that 54% of those homeowners selling plan on moving to a different city while 33 % percent will move to a different state. The shift in flexibility from remote work and schooling has caused millions of homeowners to rethink the location, size, and amenities of their homes and move to one that better fits their needs. We know people relocated last year, but it looks like this trend will continue well into 2021.
According to Realtor.com, homeowners are selling in the next 12 months because of the desire to upsize (39%). Other top motivations include realizing the amount they can sell their home for is more than they thought (31%) and the ability to work remotely for their current employer (30%).
What the market needs now and over the next 12 months are sellers. Realtor.com noted in its March 20 Weekly Housing Trends report that the number of newly listed homes was only down 14% year-over-year compared to 24% year-over-year the week before.
I would say that you should not be afraid to put your home on the market! Our survey found that 35% of homeowners selling today are concerned about not finding a home to buy before selling their own. I get those fears. But now is the best time to list because you can get top dollar for your home.
However, Black Label has Bridge Loan partners that can make it possible to buy your next home without having already sold your current home. Talk to your Black Label agent for more details on bridge loans if this is your concern.