Even though activity in the housing market has slowed from the market craze we saw over the past couple of years, today’s low supply of homes for sale not meeting buyers demand, still make this a sellers’ market. Many experts say, market conditions today make this the perfect time for sellers to make their move, as they can only benefit in good equity gains with the low inventory market we are currently experiencing netting them the most value from their home sale.
Markets are determined and dictated by the months’ supply of inventory, Also known as the absorption rate. 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 very low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary to be considered a ‘normal’ market where there are enough homes available for buyers to purchase. Graph below gives you some perspective …
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 a home to purchase. That creates increased competition among home buyers and keeps home prices on the upswing. Might I add, if buyers know they are not “the one and only” buyer interested in that home … because more than likely they are not – (aka – multiple offers) – they will put forth their best offer, in the hopes of making their offer appealing enough for the seller to accept. 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 buyers out there who are ready, willing, and able to purchase a home. Even with the rise in interest rates, with the guidance of their mortgage lender, informed buyers will do just fine. 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, and the current equity value you have in your home, might just be all you need to help you make your “next move” possible.
If you are a seller and are contemplating “making a move” it would be a good time to have a conversation on what your goals are, and how best you can achieve them. I’d be happy to have that conversation with you … I am here to help!
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