“If you’re thinking about listing your house, you probably want to know: what does being in a sellers’ market really mean?”
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.
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.
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If you’re on the fence about whether to buy now or wait for a better deal, buying sooner rather than later might be wise.
Recent data shows more sellers are listing their houses this season, which may give you more options for your home search.
Experts say the housing market isn’t set up for a price decline due to that ongoing imbalance between supply and demand.
If you’re planning to buy a home, it’s critical to understand the relationship between mortgage rates and your purchasing power.
No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a real estate professional.
Bidding wars are common today with so many buyers looking to make a purchase before mortgage rates rise further.