Homeowners are feeling good. Really good. In fact, homeowners looking to sell this summer are feeling so good about their home values that they are setting records when it comes to just how expensive they think their properties should be. According to May data from realtor.com, the past three months show higher asking prices on homes than the website has ever posted before. (N.B. Realtor.com started collecting such data in 2013.)
“The spring real estate market is coming in strong, just as we expected,” said Realtor.com chief economist Jonathan Snow. He noted that the median list price in May of $250,000 is nine percent higher than a year ago, and added, “Pent-up demand and low mortgage rates are driving consumers into the market with urgency.” Thanks to limited supply in many markets, however, that urgency is just making sellers feel even better about demanding exactly what they feel their home is worth.
If you’re hoping to take advantage of these skyrocketing values, however, you should probably act fast. Smoke warned that while homes are currently moving off market after about two months (65 days, three fewer than in April), rising inventory levels in many markets are likely to cool things down – or at least level them off – in the coming months. At present, inventories are increasing (they were up four percent in May over month prior) but are still lower (also four percent) than they were a year ago.
Do you think that the time has come to list if you’re going to?
Thank you for reading the Bryan Ellis Investing Letter!
Your comments and questions are welcomed below.