We’re in a Sellers’ Market. What Does That Mean?
Despite the fact that activity in the housing market has slowed from the frenzy of a year ago, today's low supply of homes for sale remains a sellers' market. But what exactly does that mean? And why are conditions so favorable today if you want to sell your home?
It all starts with the number of available homes for sale. According to the National Association of Realtors' (NAR) most recent Existing Home Sales Report, the housing supply remains astonishingly low. At the current sales rate, we have a 2.6-month supply of homes. A 6-month supply has historically been required for a 'normal' or 'neutral' market in which there are enough homes available for active buyers (see graph below):
How Does This Affect You?
When the supply of available homes for sale is as low as it is right now, it is much more difficult for buyers to find one. This increases buyer competition and maintains upward pressure on prices. And if buyers know they aren't the only ones interested in a home, they'll work hard to make a competitive offer. As a result, sellers are in a position to negotiate deals that meet their ideal terms. According to Lawrence Yun, Chief Economist at NAR:
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
There are still buyers who are ready, willing, and able to purchase a home right now. If you list your home in good condition and at the right price right now, it could attract a lot of attention from competitive buyers.
Today's sellers' market can be ideal for homeowners looking to relocate. Listing your home now will give you the greatest exposure to serious, competitive buyers. To begin the selling process, contact a local real estate professional.
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