Good Housing Market Brings More Willingness to Sell By Owner
As the peak home selling season drew to a close in August, indicators such as price increases, time on market and decreased distressed home sales point toward a “good” housing market. As seen in a recent ForSaleByOwner.com survey, these factors also indicate an increased willingness to sell by owner.
August 2014 Existing Home Sales
According to an August
report, after four months of consecutive increases, existing home sales fell slightly for the month, down 1.8 percent from July. Despite the dip, August still saw 2014’s second highest seasonally adjusted annual rate with 5.05 million existing home sales, just behind July with 5.14 million.
The decrease in sales was due primarily to a decrease in purchasing from cash investors, who also helped to raise prices throughout the year as regular buyers attempted to compete with their cash offers to sellers. As good news to potential homeowners, this decrease will allow them an increased opportunity to purchase.
As a share of the total number of existing home sales, August saw the lowest levels of foreclosures and short sales since the market crash in 2008. Distressed sales reached single-digit numbers for the first time since October 2008 in July and August continued the decline with numbers reaching 8 percent.
Time on market was up slightly from July’s numbers with a median of 53 days compared to 48 days, a number that is still down
roughly 26 percent from December 2013 when the number of days on market was up to 72. In August, roughly 40 percent of homes were on the market for less than a month.
Inventory levels remain at a healthy, competitive number. August saw 2.31 million existing homes available on the market, which at the current sales pace equals roughly a 5.5-month supply.
1 out of every 2 sellers are more willing to sell by owner in a good housing market
With August data consistent with what analysts could determine is a “good” housing market, we asked ForSaleByOwner.com customers to describe their willingness to sell by owner. Of eight hundred respondents, the majority (55 percent) said that a good housing market would make them more likely to consider selling by owner. Additionally, 37 percent of sellers stated that a good housing market would have no impact on their willingness to continue selling by owner while only 9 percent said that they would be less willing.
In addition to measuring the impact that the quality of the market would have on those selling by owner, the survey also asked sellers to provide further insight into how and why the market would impact their willingness.
Sellers stated that saving on commission fees and receiving increased exposure were driving forces in choosing to sell by owner. One respondent surveyed explained that by selling by owner, “I am doing most of the work as is and would not want to give that commission away. I also have more control over the process, which is a huge benefit.”
Justin Cyr successfully sold by owner in August with ForSaleByOwner.com sharing that, “I went into the process not knowing a great deal about the selling process, but with the site and all of the tips, I felt confident going forward. With the money saved by using ForSaleByOwner, I plan to increase the down payment on my new house!
To find out how you can sell by owner during a good housing market and save on commission fees while maximizing your exposure, visit ForSaleByOwner.com.