One question we are often asked at Big State Home Buyers is, “should I sell my Houston house now?” An important step in determining if now is the right time to sell is evaluating your local real estate market. Is it a buyer’s or seller’s market? By evaluating how hot the real estate market is in your area, you can make a more informed decision.
As real estate and home buying experts our team of specialists are constantly monitoring the changing landscapes in the markets we serve so we can ensure we are always offering fair deals to homeowners based on current market conditions.
In Houston, for example, fewer people are willing to sell their homes due to uncertainties caused by the COVID-19 pandemic. With fewer available homes on the market, this creates higher demand and increased home prices. However, as periods of high unemployment drag on and foreclosure restrictions are lifted, we are likely to see more people deciding to sell over the course of the fall of 2020 through 2021. Once the supply of available homes picks up, home prices will drop again.
If you are thinking about selling your home, doing so now could secure you a higher selling price than waiting 6 months, when we are likely to see an increase in inventory in the market as the economic effects of the pandemic wear on.
What Makes a HOT Real Estate Market & Why Does it Matter?
In general, a buyer’s or seller’s market is based on supply and demand. When the demand is high, but the inventory of homes is not high enough to meet that demand, it becomes a seller’s market. If the market is hot, a house sold on the market will typically sell faster and at a higher price than when it is not.
How is the Real Estate Market in Houston?
In a normal market, there is usually about six months’ worth of housing inventory, (houses for sale). That means if no other houses were put on the market, it would take about six months to sell every single one of those available.
According to Har.com, Houston had only a 3.2 month’s supply of inventory (single family houses for sale) in June 2020. This was down from 4.3-months the previous year. For comparison, the national housing market is at about a 4.8-month’s supply.
When inventory is low, buyers do not have as many options, so houses sell faster due to lower supply than demand. When Houston’s real estate market is hot, bidding wars can be common as multiple people try to buy the same house.
Should I Sell My House Now?
Inventory is currently lower than normal and, as a result, prices and competition are higher. With home sales up, now is a good time to sell.
If you have the means, time, and resources, selling your house through traditional methods will gain you the highest price. However, even if you need to sell your house quickly in “as-is” condition to a cash buyer, you can still get a deal when the market is hot.
For example, although Big State Home Buyers buys houses at a discount, in a hot market with low inventory we can offer sellers higher cash prices. In some cases, people who are not in a distressed situation sell houses in good condition to us simply because it is a fast, easy sell without the hassles.
Of course, there are always circumstances when you may have a reason you need to sell your house fast for cash. Whether a major life change or a need to sell an inherited home quickly, there are times when sellers simply cannot wait for market conditions to turn in their favor. In these instances, the most important decision you can make is selling your home to a trusted partner, and understanding the current market conditions at a time when you need to sell your home quickly will give you more peace-of-mind knowing you are getting a fair deal.
We’re here to help you make the decision that’s best for you and your unique circumstances. If you are thinking about selling your home, contact us today to get started on your way to a fast, fair offer.