Whether or not you've been following the real estate industry the past year, there is a good chance you've heard the term sellers' market. What is a sellers market? And why are conditions so good today for people to list their house?
It is really a matter of supply and demand. According to the Existing Home Sales Report from the National Association of Realtors (NAR) shows that the housing market is extremely low. A normal supply would be considered a 6 month supply of homes available for sale left if every active home sold today. In 2021 we have less than a 2 month supply.
When the supply of houses is that low, it is much harder for buyers to find homes to purchase. This creates increased competition among buyers which leads to bidding wars. When buyers know they are entering into a bidding war, they are doing their best to submit the most attractive offer. When this happens, home price rise, and sellers are in the best position to negotiate deal that meet their ideal terms. A sellers market!
Couple that with the extremely low mortgage rates, there are many more buyers who are looking for their first home or moving from their current location to a home that better meets their needs. The ongoing rise in remote work have prompted buyers to think differently about where they live and they are taking action.
Bottom line - today's ultimate sellers' market is a great opportunity for homeowners ready to make a move. Their home will likely get a lot of attention from competitive buyers as they compete to purchase.
Listing your house now will likely maximize your exposure to serious buyers who are ready to buy now. Often buyers are buying homes in less than perfect condition that they otherwise might not be interested in. They are often foregoing home inspections and waiving appraisal contingencies.
On the flip side however, this makes the market very tough for buyers who need to use one of the many buyer assistance programs available or need closing help. Sellers have so many offers they are not likely to offer closing help and many of the grant programs take longer to close. So even though the interest rates make it a great time for buyers to buy their first home by improving their buying power, the lack of homes available and the bidding wars make it very difficult for them to get an offer accepted.
Let's connect to discuss what the value of your home is in the current market and see if selling makes sense.