Why It’s Still a Sellers’ Market
You may be wondering what it means for your plans to sell your property now that there's more and more talk about the real estate market slowing down from its exuberance during the epidemic. If you're considering relocating, you should be aware that the market is anything but typical.
Despite an increase in the number of houses for sale this year, there is still a lack of properties on the market. And that implies sellers are still in a position to benefit today. That's because the number of homes on the market has an impact on who holds control: buyers or sellers. Think of it like this:
- A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.
- In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.
- A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
We've been in a red-hot sellers' market for the past two years, with inventory remaining near all-time lows. The blue area of this graph highlights how far below a balanced market condition sales are today.
What Does This Mean for You?
Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, saying:
“Overall, the best summary is that we'll move from a gangbuster sellers' market to a modest sellers' market.”
Even though the market is cooling, your circumstances are still in your favor. If you price your house at market value with an agent, you'll be able to sell it today. Houses that are valued correctly are still selling rapidly, despite the fact that buyer demand is weakening as a result of greater mortgage rates. That implies your chance to put your house on the market hasn't passed.
Sellers still have an edge in the current housing market. If you're ready to sell your property, get in touch with The Perreault Group so we can start making arrangements.