Even if you haven’t been following real estate news, you’ve likely heard about the current sellers’ market. That’s because there’s a lot of talk about how strong market conditions are for people who want to sell their houses. But if you’re thinking about listing your house, you probably want to know: what does being in a sellers’ market really mean?
What Is a Sellers’ Market?
The latest Existing Home Sales Report from the National
Association of Realtors (NAR) shows housing supply is still very low. There’s a
2-month supply of homes at the current sales pace.
Historically, a 6-month supply is necessary for a normal or
neutral market where there are enough homes available for active buyers. That
puts today deep in sellers’ market territory (see graph below):
What Does This Mean for You When You Sell?
When the supply of houses for sale is as low as it is right
now, it’s much harder for buyers to find homes to purchase. That creates increased
competition among purchasers which can lead to more bidding wars. And if buyers
know they may be entering a bidding war, they’re going to do their best to
submit a very attractive offer upfront. This could drive the final price of
your house up.
And because mortgage rates and home prices are climbing,
serious buyers are motivated to make their purchase soon, before those two
things rise further. That means, if you put your house on the market while
supply is still low, it will likely get a lot of attention from competitive
buyers.
Bottom Line
The current real estate market has incredible opportunities
for homeowners looking to make a move. Listing your house this season means
you’ll be in front of serious buyers who are ready to buy. Let’s connect so you
can jumpstart the selling process.
Source: Real Estate with Keeping Current Matters
