Why Is It Still a Seller's ?Market Today
Even if the housing market has calmed from the frenzy of the 'unicorn' years, it remains a seller's market due to the scarcity of available properties. But what does this mean for you? And why are conditions so favorable today if you want to sell your home?
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Housing inventory is measured by the number of available homes on the market. It’s also measured by months’ supply, meaning the number of months it would take to sell all those available homes based on current demand. In a balanced market, there’s usually about a six-month supply. Today, we have only about 3 months’ supply of homes at the current sales pace (see graph below):
As the graph demonstrates, given the present availability of properties, it's still a seller's market.
We're still a long way from having a balanced market. In reality, the current month's supply is half of what a normal market would have. Based on current buyer demand, this indicates there simply aren't enough properties to go around.
As Lawrence Yun, Chief Economist for NAR, says:
“There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”
How Does Being in a Seller’s Market Benefit You?
Sellers, these conditions provide you with a significant advantage. There are purchasers who are ready, willing, and able to buy a home right now. And, because there are fewer properties for sale, those that do come on the market act as magnets for those buyers.
In today's seller's market, you have a significant advantage when selling your home. Because availability is so limited, your home will be in high demand from eager buyers looking for additional possibilities. Let's talk so you know what's going on in our area as you prepare to enter the market.