Why is a Dip in Existing Home Sales Good News for Sellers?

A report published recently in The Washington Post noted that interest rates are rising and that pending home sales have dipped recently. Sounds like bad news, right?

If you're thinking about selling, this is actually really good news.

The reason home sales have been down recently is because there just isn't enough inventory to meet demand. In the areas where I work, if a home comes on the market and is priced competitively, it's under contract in a matter of days -- and often at a price higher than the listing price.

Think of it this way: there's a hot new toy, like the Fidget Spinner. Everyone wants it, but most stores sold out last week and don't expect more until next month. If you look at sales reports for Fidget Spinners for this month, you'll see a dip in the number of sales. If you happen to have a Fidget Spinner to sell, you'll probably be able to sell it for a price that's higher than the retail price.

With interest rates on the rise, buyers want to lock in NOW before they go any higher. And when inventories are low, it's not uncommon to receive multiple offers on a competitively-priced home and even see bidding wars.

According to the WaPo article, the National Association of Realtors (NAR) has increased its estimate for home sales growth in 2017 from 2.5% to 3.5%, and home prices are expected to rise 5% -- another increase from the 3.5% projected by NAR at the end of last year.

If you're thinking about selling, contact me today. I'll do a comparative market analysis to show you what comparable homes in your area have sold for over the past six months, prices for currently-listed homes, and what your home could sell for in the current market.  

Rob Traister
RE/MAX 100
Licensed in VA
(703) 935-6891
rob.traister@gmail.com