Why Today’s Seller’s Market Is Good for Your Bottom Line
Considering selling your house and unsure if it's the right time? Here's what you should understand: Despite an increase in the number of homes listed for sale this year, the market still faces a shortage of available properties to meet the demand from potential buyers.
So, what does this mean for you? Put simply, it indicates that it's still a seller's market. Here's how it breaks down:
A neutral market occurs when supply and demand are balanced. Essentially, there are enough homes available to meet buyer demand based on the current sales pace, and home prices remain relatively stable.
In a buyer's market, there are more homes for sale than there are buyers. In such a scenario, buyers have more leverage in negotiations because sellers are often willing to make concessions to close deals. Sellers might need to reduce prices to attract interest in their homes, potentially leading to price decreases. However, we haven't experienced this in years due to the limited availability of homes for sale.
Conversely, in a seller's market, it's the opposite. With the current low inventory of homes for sale, buyers struggle to find properties to purchase. This heightened competition among buyers can result in bidding wars. In anticipation of potential bidding wars, buyers tend to submit highly competitive offers upfront, potentially driving up the final sale price of your home.
The graph below utilizes data sourced from the National Association of Realtors to illustrate the extent to which we remain firmly entrenched in seller's market territory today:
What Does This Mean for You?
The market continues to operate in your favor. By seeking guidance from a real estate agent regarding preparing your listing and setting a competitive price, your property is likely to attract significant attention from enthusiastic buyers. Consequently, you can anticipate receiving multiple offers and achieving a swift sale at a favorable price, as highlighted in a recent article from Ramsey Solutions.
“A seller’s market is when demand for homes is higher than the supply of homes. And that’s still the case right now. If you’re planning to sell your house, you can expect to sell it fairly quickly for close to your asking price—as long as your asking price is realistic for the current market.”
Bottom Line
Sellers still hold the advantage in today's housing market. Reach out to us for expert guidance on navigating sellers market changes and their implications for you, let’s connect.