Today’s buyers are still dealing with a limited number of homes for sale. Thanks to continued low inventory, those buyers are competing with one another for their dream home. And, when that happens, if your house is one of the few on the market, it will rise to the top of the pool – and it will be worth it.

According to the latest data from the National Association of Realtors (NAR), nationwide, the average seller received 3.7 offers on their house in September. That number is significant because it means if your home is for sale, you’ll likely have multiple offers to pick from. 

Any offer you receive will likely be from a highly-motivated buyer who’s doing everything they can to beat the competition. The stakes for buyers are high. They’ve been looking for a house and they want to lock in their dream home before prices and mortgage rates rise further next year. Chances are, they’ll get creative with the terms of their offer, which could include waiving contingencies and offering over the asking price – both of which are great news for you.

In today’s housing market, the number of homes for sale is much lower than the strong buyer demand. As a result, homeowners ready to sell have a significant advantage. Here are three ways today’s low inventory will set you up for a win if you choose to sell.

1. Higher Prices

Many people have questions about home prices right now. How much have prices risen over the past 12 months? What’s happening with home values right now? What’s projected for next year? Here’s a look at the answers to all three of those questions.

According to the latest Home Price Index from CoreLogic, home values have increased by 18.1% compared to this time last year.

The recent surge in prices is the result of heavy buyer demand and a shortage of homes available for sale. Most experts believe that as more housing inventory comes to market (both new construction and existing homes), the supply and demand for housing will come more into balance. That balance will bring a lower rate of appreciation in 2022. Here’s a look at home price forecasts from six major entities, and they all project future appreciation:

1. Fannie Mae 7.4%
2. Freddie Mac 7%
3. Mortgage Bankers Association 5.2%
4. Home Price Expectation Survey 5.1%
5. Zelman & Associates 3%
6. National Association of Realtors 2.8%
   

While the projected rate of appreciation varies among the experts, due to things like supply chain challenges, virus variants, and more, it’s clear that home values will continue to appreciate next year.

With so many more buyers in the market than homes available for sale, homebuyers are frequently getting into bidding wars for the houses they want to purchase. This buyer competition drives home prices up. As a seller, this certainly works to your advantage, potentially netting you more for your house when you close the deal.

2. Greater Return on Your Investment

Rising prices mean homes are also gaining value, which increases the equity you have in your home. In the latest Homeowner Equity Insights Report, CoreLogic explains:

“In the second quarter of 2021, the average homeowner gained approximately $51,500 in equity during the past year.”

This year-over-year growth in equity gives you the ability to sell your house and then put that money toward a down payment on your next home, or to keep it as extra savings. Whether it’s funding an education, fueling your next move, or starting a business, your home equity is a great tool you can use to power your future.

3. Better Terms

In a sellers’ market, like we have today, you’re in the driver’s seat if you make a move. Not only do you have more leverage when it comes to selling price, but you also have the power to sell on your terms. Buyer’s are more likely to work with you if it means they can finally land their dream home. That could mean a quick closing date, financing terms, waived contingencies, and/or lease back options are among the countless terms you could include in your sales contract.

So, is low housing inventory a big deal?

Yes, especially if you want to sell on your terms. Moving now while inventory is so low is key to maximizing your opportunities.

According to the National Association of Realtors (NAR), today’s housing inventory sits at only a 2.6-month supply. To put that into perspective, a neutral market typically features a 6-month supply. That places today’s market firmly in the sellers’ market category.

That same NAR data also shows today’s inventory of single-family homes is trailing behind the level we saw last year.

Because of the ongoing supply challenges, buyers can feel like they’re wandering across a vast, empty desert when searching for their next home. That means your house could provide an oasis for buyers thirsty for options – and it could increase the chances of buyers entering a bidding war for your home.

Bottom Line

If you’re on the fence about when to sell, remember your house is a hot commodity this season. As other sellers take a break for the holidays with plans to re-list their homes in the new year, you can put your house in front of motivated buyers by making your move today. That means your house will be the center of attention, and likely the center of a bidding war too.

Selling now gives you even more opportunity to win big as buyers compete for your house in today’s market.