Considering putting your house on the market and wondering if the timing is right? Here’s what you should consider. Despite a slight increase in the number of homes available for sale this year, the market still lacks sufficient inventory to meet the demand from potential buyers.
So, what does this mean for you? Simply put, it indicates that we are still firmly entrenched in a seller’s market. Here’s a breakdown of how it operates:
- In a neutral market, supply and demand are balanced, meaning there are enough homes to satisfy the current pace of sales, and home prices remain relatively stable.
- A buyer’s market occurs when the number of homes for sale exceeds the number of interested buyers. In such scenarios, buyers wield more negotiating power as sellers may need to make concessions to close deals. This could involve price reductions to stimulate interest, potentially leading to a decrease in prices. However, due to the scarcity of homes on the market in recent years, we haven’t experienced a buyer’s market for quite some time.
- Conversely, in a seller’s market, the dynamics are reversed. With the current low inventory of homes for sale, buyers face challenges in finding suitable properties, leading to heightened competition and potential bidding wars. In such situations, buyers are inclined to submit compelling offers upfront to secure a property, potentially driving up the final sale price of your house.
The graph below, utilizing data from the National Association of Realtors, illustrates the extent to which we remain entrenched in seller’s market conditions today:
What Does This Mean for You?
The market is still working in your favor. If you lean on an agent for advice on how to get your house list ready and how to price it competitively, it should get a lot of attention from eager buyers. That means you’ll likely get multiple offers and see your house sell quickly and for top dollar. As a recent article from Ramsey Solutions explains:
“A seller’s market is when demand for homes is higher than the supply of homes. And that’s still the case right now.
If you’re planning to sell your house, you can expect to sell it fairly quickly for close to your asking price—as long as your asking price is realistic for the current market.”
Bottom Line:
Today’s housing market still favors sellers. If you’re ready to sell your house, connect with a local real estate adviser so you can start making your moves.