Selling Your Home June 26, 2022

3 Things Sellers Should Consider This Summer





The warmest season of the year, in the northern hemisphere from June to August and in the southern hemisphere from December to February.

For many, summer is a time to recharge from a busy school year. For others, their sun-soaked days are filled with events, activities, possibly even travel. And, according to a report, for about 64% of US homeowners, they may be preparing to list their properties by the end of August.

If you fall in that third category of planning, or even considering, selling this summer, here are three key things to consider:

1) Inventory, Despite Slight Increases, Remains Low 

While reports that more homes have come to the market since the start of 2022, inventory levels are still firmly in the hands of sellers. This means that there continues to be a lack of supply that satisfies the amount of demand in buyers. Iowa Association of Realtors reported a 1.5 month inventory supply for May, 28 percent lower than in May 2021 with only 6,519 homes on the market statewide. To eagerly searching buyers, this means your home could be a, or possibly the sole, solution.

2) Your Equity Opens Doors for You 

Odeta Kushi, Deputy Chief Economist at First American, reports:

“…homeowners in Q4 2021 had an average of $307,000 in equity – a historic high.”

Iowans specifically saw a 15-30% equity increase from 2020-2021. That much equity can provide incredible leverage for your next move, despite rising costs and rates, covering a large portion (if not all) of the down payment of your next home.

3) Rising Rates & Prices Affect Affordability 

It’s no secret that rising mortgage rates, home prices, and inflation have caused many to wonder if now is truly a good time to buy or sell a home.  And while it’s true the 30-year fixed mortgage rate from Freddie Mac has climbed over two percentage points this year, current rates are still below what they’ve been in past decades. Mark Fleming, Chief Economist at First American, explains:“Rising mortgage rates impact affordability, but historical context is important. An average 30-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.”

Bottom Line 

Just like anything else in life, timing is a big part of any decision. Consider these key factors and discuss your financing options, timeline, goals with a trusted real estate professional in your town to make the best decision for you!
Want to learn more about selling this summer?Connect with me for your FREE 2022 summer seller guide!