Why it’s still a seller’s market today
Although the housing market is no longer as frenetic as it was during the ‘unicorn years’, there are still many sellers because the number of homes available for sale is so small. What does this mean for you? Why are conditions so good today if you’re looking to sell your home? The latest Existing Home Sales Report by the National Association of Realtors shows that housing supply is still shockingly low. Housing inventory is determined by the number available homes. It is also measured in months’ supply. This is the number of month it would take for all those homes to be sold based on the current demand. In a balanced marketplace, the supply is usually around six months. We have only 3 months’ worth of homes available at the current pace of sales (see graph below). As the visual shows it, the current inventory is still a seller’s market. The current months’ supply of homes is only half of what is typical for a normal market. According to Lawrence Yun, chief economist for NAR: “There are just not enough homes available.” The market is able to absorb a doubling in inventory. There are buyers ready, willing and able to buy a home. If you work with a real estate agent in your area to list your home right now, at the right price and in good condition, it could attract a lot attention. You may even receive multiple offers. Bottom LineToday’s buyer’s market gives you a huge advantage when selling your home. Due to the low supply, your home will be in demand by motivated buyers who want more options. Contact a local agent to learn about the current market in your area before you enter the market.
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