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.
Don’t Tackle Selling Your Home on Your Own – an Agent Can Help
A real estate professional can save you TIME and MONEY by managing every step of the process for you!
Early October is the Sweet Spot for Buyers
While home prices are still appreciating overall, you may see some homes with price adjustments from eager sellers this October.
If You’re a Buyer, Is Offering Asking Price Enough?
If you’ve found your dream home, you need to be realistic about today’s housing market and how that impacts the offer you’ll make.
Two Reasons Why Waiting a Year To Buy Could Cost You
If you are hoping that waiting a year might mean better market conditions to purchase a home, you may want to think again.
Is a 20% Down Payment Really Necessary To Purchase a Home?
If you’re a prospective homebuyer, it’s important to know you don’t have to put the full 20% down
Is It Time To Move on to a New Home?
As the past year has shown, our needs can change rapidly. That means the longer you’ve been in your home, the more likely it is your needs have evolved.
Is the Number of Homes for Sale Finally Growing?
Signs of relief are finally appearing for frustrated buyers. If you’re thinking of selling, now may be a good time to do so!
5 Tips for Making Your Best Offer
In today’s sellers’ market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses for sale and high buyer demand.
Why It’s Still Safe To Sell Your Home
Real estate professionals use new technology, tools, cleaning procedures, and the latest guidance to meet your changing needs and to keep you safe.
Understand Your Options To Avoid Foreclosure
There are alternatives available to help you avoid having to go through the foreclosure process and a real estate professional can help you.