Thinking of selling your home and wondering if now is the right time to do so? You must know this. Although the number of homes for sale is increasing this year, there are still not enough homes on the market to accommodate all the buyers who want to buy.
So what does this mean for you? Simply put, this means it’s still a seller-driven market. How it works:
A neutral market is a market where supply and demand are balanced. There are simply enough homes available at current sales rates to meet buyer demand, and home prices remain fairly stable.
A buyer’s market is when there are more homes for sale than buyers. When this happens, the buyer is more likely to negotiate because the seller is willing to compromise to complete the transaction. In a buyer’s market, sellers may have to drop their prices to stimulate interest in their homes, which can cause prices to drop. But I haven’t seen that in years because there are so few homes for sale.
In a seller’s market, the exact opposite is true. When the supply of homes for sale is as low as it is now, it is much more difficult for buyers to find a home to buy. This can create more competition between buyers, leading to more bidding wars. And if we know a buyer might be locked in a bidding war, we’ll do our best to present a very attractive offer. This can increase the final sale price of your home.
The chart below uses data from the National Association of Realtors to show how deep we are in the seller’s market zone today.
What does this mean to you?
The market is still working in your favor. Real estate agents need to reach out to prospective buyers for advice on how to prepare a home listing and price it competitively. This means you are more likely to receive multiple offers and your home will sell quickly and at higher prices. A recent article from Ramsey Solutions explains:
“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.”
