Four Critical Selling Tips as Housing Inventory Rises

As home sales across America increase and we track toward 4.03 million deals a year, the National Association of Realtors (NAR) notes that American buyers are keenly awaiting the Federal Reserve to cut mortgage costs, a move expected to provide a significant boost to the market.

NAR's latest data indicates that the average price of a home in America was $422,800 at the end of May, marking a 1.3% increase from 12 months prior. This rise represents the 23rd successive month of value appreciation. Existing home sales saw a slight uptick of 0.8% in May compared with April, though still down by 0.7% from last May. Single-family homes, often considered the bellwether category for the U.S. market, experienced a 1.1% increase in sales to a seasonally adjusted annual rate of 3.67 million, up 0.3% from May 2024. The median price for these homes is now $427,800. Condos, however, are facing a bit more pressure, with sales falling 2.7% to an annual rate of 360,000 units, down 10% from last May, despite a 0.7% increase in median price to $371,300.

The primary concern highlighted by NAR is the increasing number of unsold homes. While this is excellent news for buyers, it signals to sellers that they may need to adjust price expectations if this trend continues. NAR reports that there were 1.54 million homes on the market at the end of May—a 6.2% increase from April's figures. At the current sales rate, it would take almost five months to sell these properties. Just 12 months ago, there were only 1.28 million units on the market, meaning inventory has built up by 20.3% since then.

Lawrence Yun, Chief Economist at NAR, has joined the growing chorus advocating for the Fed to reduce interest rates from their current guidance of 4.25%-4.5%. "The relatively subdued sales are largely due to persistently high mortgage rates," he stated. "Lower interest rates will attract more buyers and sellers." In a positive sign for owners considering selling in late summer or fall, he added, "Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs." According to a June 18 report from Freddie Mac, the average 30-year fixed-rate mortgage was 6.81%, only 0.6% lower than 12 months ago.

At BrightWork Realty, we believe in "The SMART Way to Real Estate," partnering with you to make intelligent choices, especially in a dynamic market. Here are four essential pieces of advice if you're looking to sell in the short term, based on this NAR report:

Be Competitive 

With a 20.3% increase in inventory over the past 12 months, we are seeing a shift towards a buyers' market. Overpricing your home can lead to it lingering on the market, potentially making it less attractive. Some agents might suggest pricing 5%-10% below market value to generate multiple offers. At BrightWork Realty, we carefully consider this advice, providing you with accurate local market insights from Orinda, Moraga, Lafayette, Walnut Creek, Concord, Danville, Alameda, and the broader East Bay area to set an appropriate and competitive price. We'd be delighted to offer personalized advice on your property.

It's Showtime! 

Buyers now have the luxury of being choosy, so your home needs to stand out. Invest in professional photography and seriously consider staging your home. Declutter, depersonalize, and make any necessary minor repairs or cosmetic upgrades. Our in-house client care team at BrightWork Realty is here to assist sellers in preparing their homes to maximize value, managing everything from improvements and staging to presentation before your home hits the market. We also understand that sometimes selling "as is" with just a quick clean is the best option, and we're flexible to accommodate your needs.

Be Flexible 

Don't be surprised by offers below your initial asking price. Instead of immediately rejecting them, be prepared to negotiate not only on price but also on terms, such as settlement dates and even the inclusion of certain appliances or furniture. Our team at BrightWork Realty excels in strong negotiation skills, always looking after your best interests to ensure all parties are happy with the transaction.

Use the Experts 

In a changing market with increasing inventory, commissioning an experienced and solutions-based real estate advocate is critical. At BrightWork Realty, we provide accurate local market insights, help you set an appropriate price, and develop a comprehensive marketing strategy to reach your target audience. When the time is right, we will lead price negotiations with honest and open communication. We are more than pleased to assist you with your property needs, helping you achieve your real estate dreams and build a brilliant future through real estate.

For more information about BrightWork Realty and how we can help you navigate the current market, please contact us here or call us at 925-200-6000.