Five Offers Per Every Home Sold
Beginning ahead of Spring in February, the Spring market is showing intense buyer competition. According to a February 2022 report from REALTORS® Confidence Index Survey, February showed an average of nearly five offers per every home sold in the month. This is a higher average offer amount than any other recent month. As a seller, you could have multiple offers simply due to the lack of available inventory and find yourself in a bidding war.
48% of Offers Were Above List Price
Buyers are already aware of this intense competition and have been offering well above asking price when submitting offers. Most have already missed out on a desired listing and continue to grow more eager to close a deal. The National Association of Realtors (NAR) reported that for the month of February Nationwide, 48% of offers submitted were above the list price. For these offers, most were about 2.9% over the list price but 13% of the offers were 10% over the list price.
84% of Listings Averaged 18 Days on the Market
To further intensify the demand, NAR reported that 84% of all listings were on the market for less than one month with the average lasting only 18 days. The demand continues to be greater than the supply. Receiving up to five offers on your home, all above the list price, allows you the luxury to be choosy with your options and proceed with the offer that best suits your needs and makes your most comfortable with the sale.
Mortgage Rates for 2023 could reach 6%
Another reason this buyer competition is intensifying is due to the threat of increased mortgage rates. The Federal Open Market Committee (FOMC) forecasts that with the course of their planned increases, the mortgage rates for 2023 will rise steeply and could hit 6%. The risk of this increase has many buyers scrambling to lock in at current rates before this prediction rings true and the seller’s market starts to wane in 2023.
As always, it is important to work with an experienced and knowledgeable realtor who can help guide you through the transaction. This is important regardless of if you are on the buying or selling side. With fewer active listings and the threat of rising mortgage rates, the Spring market is in full bloom and about to get more intense than ever.
If you are interested in listing your home, or would like to discuss your options with an experienced agent, please contact us!