Why Low Housing Inventory Makes Early 2024 a Prime Time to Sell Your Home

For homeowners considering a sale, early 2024 presents a significant opportunity due to a severe shortage of homes for sale coupled with strong buyer demand. Based on recent market data, listing your home now, rather than waiting for the traditional spring market, could lead to a faster sale and more favorable terms. The national housing inventory is down approximately 11% from last year, creating a competitive environment where motivated buyers are actively searching for limited options.

What Does the Current Housing Market Data Show?

Recent figures from industry sources indicate a clear supply and demand imbalance. While buyer demand has strengthened, the number of available homes has sharply declined. For example, as of late January, data shows:

• A near 20% annual increase in home tour requests.
• A mere 3.7% yearly increase in purchase offers, directly limited by low inventory.
• A 11% drop in the number of homes for sale across major metropolitan markets.

This shortage is even more acute in specific cities. Seattle and Los Angeles have witnessed a 29% reduction in inventory, while Portland's supply is down 26%. Even in areas like Denver and Orange County where inventory has seen a slight uptick, supply remains insufficient to meet buyer demand.

How Do You Measure a Balanced Real Estate Market?

A market is considered balanced between buyers and sellers when there is a six-month supply of homes for sale. This metric, known as "months of supply," calculates how long it would take for all current listed homes to sell at the present sales pace. The current national supply falls far short of this equilibrium. Critical markets like Denver have only 1.3 months of supply, and Orange County has 2.2 months. Nationally, there are only half as many homes available as needed for a healthy, balanced market.

Why Should Sellers Consider Listing Their Home Now?

The seasonal trend of waiting until spring to list a home may not be the optimal strategy this year. With buyer activity already high and inventory at a multi-year low for January, sellers who list early can avoid the potential influx of competition later in the season. Homes on the market now receive disproportionate attention from serious buyers who are eager to make a purchase. This environment often leads to multiple-offer scenarios, which can drive up the final selling price.

What Are Practical Steps for sellers?

Based on our experience assessment, homeowners should act promptly to capitalize on this unique window.

1. Get a Professional Valuation: Obtain a current market analysis to understand your home’s potential value in today’s conditions.
2. Prepare Your Home: Ensure your property is in show-ready condition to make a strong first impression on the eager pool of buyers.
3. Develop a Strategic Timeline: Coordinate with a real estate professional to plan a listing and marketing strategy that aligns with the peak of current buyer demand.

The key takeaway is that listing early in 2024 allows sellers to leverage strong buyer interest against minimal competition. While outcomes are never guaranteed, the current market dynamics suggest a high probability of a successful sale for well-priced, desirable properties.