It continues to be a hot real estate market, with far more buyers than homes available for sale. Those that are for sale are getting snapped up quickly, too. According to a recent report from the National Association of Realtors (NAR), the typical property stays on the market for just 17 days before an offer is accepted. It's not too much of a surprise, as there's currently an average of 4.8 offers per home.
Real estate is far from a bear market right now, but as a real estate investor, you might be wondering how much longer home values and the demand for properties will continue to soar. Here are a few reasons the time is now for you to make good on your property investment.
Bidding wars are still commonplace
The median price for existing homes is currently at $375,300, an increase of 15% from a year ago, according to NAR.
Still, 57% of buyer offers came in above list price in March, as opposed to 48% in February. While some buyers have had to retreat and rethink their strategies after having their offer declined in a bidding war, plenty of buyers remain determined. In fact, half have made at least two unsuccessful bids before getting an offer accepted. Price your home right and it could very well launch a bidding war -- just know that if you're purchasing another home at the same time you're selling yours, you could find yourself competing in one as well.
You can get away with minimal renovations -- or none at all
Renovations and upgrades are always good for attracting more buyer interest and potentially higher offers. Even minimal repairs and touch-ups can go a long way with buyers, who are always eager to have less work to do when they move in.
But when demand for homes far outweighs supply as it had done lately, you're in a much better position to sell your home even if it needs a bit of work done -- or a lot of work done, in some cases. For example, a home that's in a hot location could be sold as-is and still get snapped up quickly and for a high price.
If you've owned your home for a while and are already looking at a sizable profit due to high home values, it makes sense that you wouldn't want to pour money into any major renovations -- and you can certainly get away with it in this market.
Interest rates are on the rise
Interest rates are currently at 5.2% for a 30-year, fixed-rate mortgage, up from 5.13% just last week. For some deep-pocketed buyers, rising interest rates won't get in the way of financing a new home. Cash buyers are also out in full force; in March, they made up 28% of the market share, as opposed to 25% in February and 23% a year ago, according to NAR.
But for first-time homebuyers especially, rising interest rates could cause some to rethink their budget and even their home search entirely, with some committing to remain renters until the market cools off. If you want to take advantage of listing your home for the largest possible group of homebuyers, it would be a good time to sell now.
If you're thinking of selling your home or offloading a rental property -- even if it's looking a little worse for wear -- you've got a captive audience of buyers right now. While no one can predict how long it will take for a home to sell or whether buyers will duke it out in a bidding war, your best chance for a quicker and more lucrative sale is now.
Editor's Note: The median price for existing homes has been corrected.