The Most Convincing Reason Your Clients Should List Right Now
That age-old myth that the spring market is the best time to sell?
It simply isn’t true.
A recent study by realtor.com confirmed that February of 2019 had more views per listing than any other month. January came in a close second, and it’s been moving that direction for the past five years.
So, what does this mean for your clients?
Waiting to sell only leads to one thing: more competition. And when there’s more competition, the likelihood the listing will spend more time on the market increases while the chance of maximizing their sale price decreases.
With low inventory plaguing most markets around the country, this is the single most convincing reason to get your clients to move off the fence and list right now.
To further support your reasoning, here are a couple of statistics to convince them:
2019 saw a 12.6% growth in home showings nationwide compared to the year prior – ShowingTime
There’s a long line of buyers waiting to purchase homes, and they’re not waiting until the spring to do it.
Millenials are in the homebuying stage of life, but there aren’t enough homes coming on the market to keep up with the demand.
Combine that with the fact that homes that list in winter sell faster, and you have a recipe for a short and smooth process.
Permits for future home construction surged to a 12 year high – US Department of Housing & Urban Development
The end of 2019 saw a flood of new construction permits, reaching an all-time high in over a decade. On top of that, housing starts rose 3.2% to 1.365 million units last month, with single-family construction racing to a 10-month high.
What does this mean for those who wait?
By the spring, many of those new construction homes will be coming to market and bring a lot of competition from buyers along with them.
The 30-Year Fixed Mortgage Interest Rate Is Holding Strong at 3.8% – Freddie Mac
The last ten years have seen a steady decline in mortgage rates as the market leveled out and demand increased.
Today, those rates have hit a historic low, putting a lot of buying power into the hands of those who are looking to expand or upgrade from their current home.
For reference, take a look at the average rates over the past four decades:
- 1970s: 8.86%
- 1980s: 12.70%
- 1990s: 8.12%
- 2000s: 6.29%
Although mortgage rates may not be the most thrilling topic of conversation, this is a very important piece of why time is of the essence in the buying/selling process.
If anything were to occur that would shift the mortgage rates higher, your clients need to know that they will pay more for the same house. It’s a strong point that anyone would connect with.
Bottom Line
The myth that winter is a bad time to sell is busted, and buyers are so eager to purchase a home that they really never stopped looking.
This is THE time to communicate to your clients and prospects that waiting until the spring market could mean getting less for their home, longer time on the market and less buying power.
Remember:
- Mortgage rates are down
- Buyer demand is up
- New construction is coming
- Home showings are up
In our most recent Monthly Market Report, we covered what agents need to know about this unique winter market. Use the script to make a video, download the slides, and let your clients know that you are the trusted advisor they can count on.
What’s better is that KCM members get access to the Market Report so they can stay current on the latest trends and news in real estate.
We take the top highlights of each month and condense it down to the ones that are most important for agents and their clients to know. It’s the best 20 minutes you could spend as an agent.
