Buyer Competition is Intense, It’s a Great Time to List

Spring is traditionally a busy season for REALTORS®, and this year shows every indication that it will again be another great time for sellers to list their homes. Buyer competition is intense with 27 percent fewer active listings on the Mississippi Gulf Coast than this time last year and with the expectation of rising mortgage rates. 

With those factors in the minds of buyers, sellers are experiencing multiple offer situations, with the average home getting nearly five (4.8) offers in February according to the February National Association of REALTORS® (NAR) Confidence Index Survey. This may fluctuate a bit in coming months, but with the number of homes on the market, odds are good that more than one buyer will be interested in a home. 

Competition is so fierce amongst buyers nationally that 48 percent of offers were above the list price. While the average offer was 2.9 percent over the list price, based on the national median sales price in February 2022, buyers typically offered more than $10,000 over the asking price during the second month of the year. Of those offers, 13 percent were at 10% above the asking price and 29 percent were at the asking price. Locally, average sales price in February was $238,588, up 17 percent from last year and approximately $7,000 more than in January 2022. 

Buyers are finding themselves making higher offers and, in many instances, making more offers. According to the NAR report, REALTORS® who reported on the number of offers the buyer made and subsequently lost prior to acceptance was two, with the third offer being successful. However, 25 percent of buyers were successful in closing on their home in the first try. This is where working with a real estate agent like those at Expect Realty who know the local market conditions and tendencies can help buyers make a good offer to purchase a home in Gulfport, Biloxi, Ocean Springs or anywhere along the Mississippi Gulf Coast, and sellers set an appropriate price and accept the best offer for their situation.  

Not only are homes receiving multiple offers, those on the market are moving at a much more rapid pace. In February 2022, 84 percent of listings were on the market for less than one month as homebuying continues to outpace supply. Sellers on the Mississippi Gulf Coast averaged just just over a month, 31 days, with their homes on the market, a slight decrease from January’s 33-day average. Nationally in January, 79 percent listed for less than a month in January 2022 and 74 percent in February 2021. For comparison, as the housing market began its recovery in 2012, in January of that year only 21 percent of homes were on the market for less than a month, with more than a quarter (28 percent) listed for more than six months.    

Competition amongst buyers could intensify even more in 2022 as home buyers look to lock in at current mortgage rates. If you are interested in selling your home during the spring buying period, the agents at Expect Realty are some of the best real estate agents in Mississippi to guide you through the process. We also have specialists available to assist those looking to buy a home on the Mississippi Gulf Coast in Bay St. Louis, Gulfport, Biloxi, Ocean Springs or any of our beautiful coastal communities. Contact us today at 228.215.1861 or expectmore@expectrealty.com.