It may seem that having a small house is a burden. After all, there's a sense that homebuyers are always looking for something bigger and better. However, if you've paid attention to the way home sales have gone over the past few years, you'll notice that smaller homes start selling faster than many of their larger competitors. Here are four reasons your smallest home can sell for more than ever.
Days are calculated from the day of publication to the closing date. Closures can take a while, especially given the labor shortage in the market. It is common to hear, anecdotally, that homes are going to be hired in less than a week after several offers. Competition seems to be unusually fierce for January, which is often one of the slowest months in the housing market.
The spring market usually starts with the President's Day weekend. Rising mortgage rates during the month may have frightened potential buyers to increase their searches before rates put a price on them. Best Buy shares look like a screaming sale after joining a worrying list of big retailers who miscalculated demand in the second quarter amid concerns about high inflation and recession. Many buyers now consider lower maintenance costs and home location to be much more valuable than the size metric.
Others, and these are definitely not the ones who have lost their jobs during the pandemic, are putting their big houses on the market and taking advantage of low mortgage rates to become even bigger and even nicer homes. This is fantastic for you as a smaller homeowner, as buyers finally realize how much they can do with the square footage you're selling. The price of the typical small home rose 8.1% year-on-year in July, compared to a 7.5% increase for medium-sized homes and an increase of 6.7% for large homes. Total supply and new listings are at record lows, and that means what's on the market now sells fast.
To determine the locations where homes are selling faster, researchers calculated the median number of days on the market, with lower values ranked higher. The increase in outstanding sales of large homes was almost double that of medium-sized homes, with an even larger gap for small homes. The story is similar for homes that were contracted in July, with large homes seeing a 16.1% year-on-year increase in outstanding sales, compared to 9% for homes medium-sized homes and 2.6% for small houses. With some shoppers now targeting trendy new areas, they're willing to set aside some of their size concerns to reach the hottest neighborhoods.
Even if your home is only adjacent to one of these hot spots, you'll find buyers who would never have looked twice at your smaller home. The typical small house sold 19 days faster than the typical big house of all sizes sold faster than last year in July, and small and medium homes sold faster than large houses. New large home listings increased nearly 8% for large homes and decreased for smaller ones. New large home listings increased 7.6% year-over-year, while down 8.3% for small homes and 1% for medium-sized homes.
The typical small house was contracted in 28 days (2 days less than last year), compared to 34 days (- for medium houses) and 47 days (- for large houses). However, some markets can overheat; in a booming housing market, list prices can far exceed the average value of homes in a local area, and sellers are looking to make greater profits. .