We're in a Sellers' Market. What Does This Mean?
Even though activity in the housing market has slowed from the frenzy we saw over a year ago, today's low supply of homes for sale remains a sellers' market. But what exactly does that imply? And why are conditions today so favorable for listing your home?
It all starts with the number of available homes for sale. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):
What Does This Mean for You?
When the supply of available homes for sale is as low as it is, it is much more difficult for buyers to find one. This increases buyer competition and maintains upward pressure on prices. And if buyers know they are just some of the ones interested in a home, they'll work hard to make a competitive offer. As a result, sellers are in a position to negotiate deals that meet their ideal terms. Lawrence Yun, Chief Economist at NAR, says:
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
There are still buyers who are ready, willing, and able to purchase a home right now. If you list your home in good condition and at the right price right now, it could attract a lot of attention from competitive buyers.
Today's sellers' market provides excellent opportunities for homeowners looking to relocate. Listing your home now will give you the greatest exposure to serious, competitive buyers. Let's talk about how to get the selling process started.