If you’re planning to sell your home in 2018, get ready for some competition! According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of building permits for single-family homes is up 7.4% over last year. A nice situation for buyers, but a more difficult one for sellers.
Less inventory means less competition, and currently, the market is very low in inventory. This is great for sellers right now with many experiencing:
Bidding wars resulting in higher sale prices
However, that 7.4% increase in building permits is going to up the inventory making those seller benefits difficult to attain. More inventory means more competition. According to Chief Economist Nela Richardson: “Because existing home inventory has been so low for so long, new construction is taking a larger share of the market…Builders meet the buyers and see the demand firsthand.
For buyers, more inventory means more options which is just as beneficial to the market as it is to buyers. An increase in options can allow for more buyer control and affordable housing. Lawrence Yun, NAR’s Chief Economist, explained: “This rise in single-family housing construction will help tame home price growth, and the increase in multifamily units should continue to help slow rent growth.”
If you are considering selling your house, sooner will be better than later. Without the burden of competition you’ll be able you get more attention for your listing and a better price for your home. Start the process TODAY with a free estimate of your home’s current worth here.