Although the slowdown in housing market activity from the frenzy witnessed over a year ago, the low current supply of homes for sale continues to favor sellers, creating a sellers’ market. But what does this mean, and why is listing your house in such conditions beneficial?
The critical factor behind the current sellers’ market is the limited number of homes. According to the most recent Existing Home Sales Report by the National Association of Realtors (NAR), the housing supply remains extremely low, with only a 2.6-month collection of homes at the current sales pace. Typically, a “normal” or “neutral” market requires a six-month supply of homes to ensure sufficient options for active buyers (as shown in the graph below):
What Does This Mean for You?
In a market with such a low supply of homes for sale, it becomes more challenging for buyers to find a suitable home, resulting in increased competition among them and driving prices upwards. In addition, if buyers are aware of other interested parties, they tend to submit more attractive offers. Consequently, sellers have more bargaining power to negotiate deals that align with their ideal terms. According to Lawrence Yun, the Chief Economist at NAR:
“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. So 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 tremendous opportunities for homeowners ready to move. Listing your house now will maximize your exposure to serious, competitive buyers. So let’s connect to discuss how to jumpstart the selling process.