Is Now the Right Time To Sell?
Thinking about Selling but not sure if now is the time? Here are the three most important things to remember…
With headlines screaming contradicting information everywhere, it is hard to make sense of where the real estate market is today and where it is heading. We know that 2022 was a banner year for Sellers. We know that interest rates doubled over the course of 12 months in 2022. These are facts. What is harder to know is where that puts us in 2023. What do we make of the real estate market now and moving through this year. You may ask, “Is NOW the time to sell?” YES, and here are my three compelling reasons why:
- INVENTORY OF AVAILABLE HOMES REMAINS NEAR HISTORIC LOWS. As of the most recent report issued by the Rhode Island Association of Realtors®, we have 1.3 months’ worth of housing on the market.
This is known as the “absorption rate”, a fancy way of saying that if we stopped putting houses on the market today, we would sell (or absorb) all of the available inventory in 1.3 months. As a frame of reference, a balanced market would have 6 months’ worth of available inventory. This shows us that we remain in a STRONG SELLERS’ MARKET.
- HOMES THAT ARE PRICED CORRECTLY ARE SELLING. Because the pool of available buyers did experience a retraction with the increase in of interest rates, it is more important than ever to work with an experienced Listing Specialist who can help you accurately price your home. Low inventory assures that you are one of the few properties that buyers will see, so correct pricing is key. We continue to see price points stay strong. In Rhode Island, single family home prices increased year over year by just over 5% for the month of January 2023. (RIAR) Sellers who understand the importance of finding the balance between condition, location and price are seeing their properties are move quickly. There is a buyer for every house in this strong sellers’ market…with the caveat that your home is priced CORRECTLY.
- BUYERS ARE STILL BUYING. For many buyers, sitting on the sideline with the hope of decreased mortgage rates and increased inventory simply is not an option. Buyers still need to buy. Of course, there are some buyers who have been priced out of the market. But for many others, they have adjusted their expectations to focus on houses that are within their new budget with the increased mortgage interest rates. Perhaps the larger home with a higher price tag is not an option, but they still need to purchase.
Here at Homes By Connect, we are seeing signs of a very brisk spring market emerging. In the past few weeks, we have listed three properties throughout Rhode Island which saw multiple competitive offers, with buyers and their agents clamoring to get into the properties quickly and submit their offers. This includes both single family and multi-family buyers. Perhaps it is the hope that spring brings, but our experience is that buyers seem more hopeful than they did at the tail end of 2022 as they have acclimated to the “new normal” of interest rates and have decided to jump back in or simply need to continue their home search.
Katy Donovan is Owner & Principal Broker of Homes By Connect located in Portsmouth, Rhode Island.