Is This the Best Seller’s Market Ever?
The inventory squeeze has left home buyers with fewer options on the market than they’ve seen in decades. While that’s bad news for them, the continuously high demand means it’s one of the best times to be a seller—ever.
“I’ve been selling real estate for 25 years, and this is the strongest seller’s market I have ever seen in my entire real estate career,” David Fogg, a sales associate with Keller Williams Realty World Media Center in Burbank, Calif., told CNBC. “A lot of our sellers are optimistically pricing their homes in today’s market, and I have to say, in most cases, we’re getting the home sold anyway.” He says he recently listed what’s considered an entry-level home in the area—a three-bedroom, two-bath, 1,240-square foot home—for $789,000. The seller received three offers before Fogg held the first open house, which 100 would-be buyers attended.
“It’s very tough. Most of the listings are intentionally listed a little low to get a lot of attention, and it’s not uncommon to get 12 to 16 offers on one property,” says Jilbert Mosessian, a renter in the Burbank area who is looking to buy a home. He says he recently put offers on three homes considerably higher than their listing prices, “and I was told that there were still five people above me and [the seller was] only going to deal with them.”
The inventory of homes for sale decreased by 6.6 percent at the end of March compared to a year ago, according to the National Association of REALTORS®. Unsold housing inventory is at a 3.8-month supply. Most economists consider a balanced market to be a five- to six-month supply. Forty-eight percent of homes in March sold in less than a month.
To better compete, buyers are dropping contingencies and offering more cash down. Real estate professionals also are bracing their clients for potential appraisal issues because in hot markets, homes may appraise below the bid-up sale price.
“I’m talking to the buyers in advance about these problems so that we address the appraisal issues before we go to escrow, and nobody is surprised in three weeks when we get an appraisal that’s on the lower side,” Fogg says.
Key Skills You Need Your Listing Agent To Have
A listing agent, also known as a seller’s agent, helps market and sell your house while advocating for you every step of the way.
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Don’t fall for the negative headlines and become part of this statistic. Remember, data from a number of sources shows home prices aren’t falling anymore.
Unpacking the Long-Term Benefits of Homeownership
Higher mortgage rates, rising home prices, and ongoing affordability concerns may make you wonder if you should buy a home right now.
Why Your House Didn’t Sell
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The Return of Normal Seasonality for Home Price Appreciation
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Beginning with Pre-Approval
Pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow.
Your Home Equity Can Offset Affordability Challenges
Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home, but what about home equity?
Are More Homes Coming onto the Market?
If you’ve been putting off selling your house, now may be the sweet spot to make your move. The longer you wait, the more competition you’ll have.
Why Is Housing Inventory So Low?
The shortage of inventory isn’t just a today problem. It’s been a challenge for years. Let’s take a look what contributed this limited supply