Even if you haven’t been following real estate news, you’ve likely heard about the current
sellers’ market. That’s because there’s a lot of talk about how strong market
conditions are for people who want to
sell their houses. But if you’re thinking about listing your house, you probably want to know: what does being in a sellers’ market really mean?
The latest
Existing Home Sales Report from the
National Association of Realtors (NAR) shows housing supply is still very low.
There’s a 2-month supply of homes at the current sales pace.Historically, a 6-month supply is necessary for a normal or neutral market where there are enough homes available for active buyers. That puts today deep in sellers’ market territory (see graph below):
What Does This Mean for You When You Sell?
When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which can lead to more
bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer upfront. This could drive the final price of your house up.
And because
mortgage rates and
home prices are climbing, serious buyers are motivated to make their purchase soon, before those two things rise further. That means, if you put your house
on the market while supply is still low, it will likely get a lot of attention from competitive buyers.
The current real estate market has incredible opportunities for homeowners looking to make a move. Listing your house this season means you’ll be in front of serious buyers who are ready to buy.
