Another really good article about how we are in a strong seller's market. Without a doubt, volume is down. Many potential sellers are literally stuck in their current homes due to the crazy low mortgage rate that they currently enjoy. It just does not make sense to move from a 2.5% interest rate to over 6%. So, these sellers are basically out of the market. But, there are still many, many homebuyers looking for homes. Many are first time buyers. Many are cash buyers. More buyers than existing homes for sale. So, prices remain firm. And, in my opinion, they will increase in price over the next few months. If you're a seller, it's a good time to put your home on the market. If you're a buyer, why risk having to pay more later. Prices are not likely to come down. And, regarding the high mortgage rates. Lock them in today and refinance to a lower rate when and if they go down in the future, If they don't go down, you'll be glad you have a 6% mortgage. Not good to put off all the benefits of home ownership. Cheryl and I would love to help you with any of your real estate needs. Call us at 720.220.5058 or 303.981.7339.
We’re in a Sellers’ Market. What Does That 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 is still a sellers’ market. But what does that really mean? And why are conditions today so good if you want to list your house?
It starts with the number of homes available 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 homes for sale is as low as it is right now, it’s much harder for buyers to find one to purchase. That creates increased competition among purchasers and keeps upward pressure on prices. And if buyers know they’re not the only one interested in a home, they’re going to do their best to submit a very attractive offer. As this happens, sellers are positioned 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.”
Right now, there are still buyers who are ready, willing, and able to purchase a home. If you list your house right now in good condition and at the right price, it could get a lot of attention from competitive buyers.
Bottom Line
Today’s sellers’ market holds great opportunities for homeowners ready to make a move. Listing your house now will maximize your exposure to serious, competitive buyers. Let’s connect to discuss how to jumpstart the selling process.