What does being in a seller’s market mean?
Whether or not you are plugged into the real estate market you have most likely heard this term pop up before, especially, because we are currently in a seller’s market, but what does that mean exactly?
Supply VS. Demand
It all comes down to supply and demand, right now the supply of houses is low so it’s much harder for people to find homes to buy. With many people staying in place, there is simply less inventory of homes for sale, alternatively many renters are contemplating getting their first mortgage. According to the latest Existing Homes Report by the National Association of Realtors (NAR), Historically, a 6-month supply is necessary for a ‘neutral’ market whereas today, we have only a 2.6-month supply of homes creating this seller’s market.
This creates increased competition amongst buyers. Due to the current historically low mortgage rates and increase in remote work opportunities, right now many buyers are ready and willing to take the plunge to purchase a home which means extra steps need to be taken to get your offer accepted in a seller’s market.
Right now homes are selling much faster than before, receiving more offers, and often selling above the asking price. The bottom line is if you’re a homeowner who is ready to make a move, the seller’s sweet spot holds great opportunities for returns.
Looking to sell? Use our Home Value Estimator!
Published on 2021-08-26 15:47:30