You’ve probably heard about the current sellers’ market, even if you haven’t been following real estate news. This is because there has been a lot of chatter about how good the market is for people looking to sell their homes. But if you’re thinking about selling your home, you’re undoubtedly curious about what it means to be in a sellers’ market.
What Does a Seller’s Market Mean?
Housing supply is still relatively low, according to the National Association of Realtors’ (NAR) monthly Existing Home Sales Report. At the present sales rate, there is a two-month supply of properties.
A 6-month supply has historically been required for a typical or neutral market with enough properties available for active buyers. This places today firmly in the seller’s market (see graph below):
What Does This Mean When It Comes to Selling?
It’s considerably more difficult for purchasers to discover homes to buy when the supply of properties for sale is as low as it is right now. This increases buyer competition, potentially leading to more bidding wars. If buyers are aware that they may be involved in a bidding battle, they will make every effort to submit a very enticing offer up front. This could increase the total cost of your home.
And, because mortgage rates and property prices are rising, serious purchasers are pressed to act quickly before those two factors rise much more. That implies that if you list your home while supply is still low, it will certainly attract a lot of interest from eager purchasers.
For homeowners wishing to relocate, the current real estate market offers fantastic prospects. You’ll be in front of serious buyers who are ready to buy if you list your home this season. Let’s connect so you can start selling right away.