The housing market has been reaching new heights over the course of the last twelve months. The high demand of buyers has drastically outnumbered the amount of sellers which has heavily impacted the housing inventory shortage. The National Association of Realtors has reported that sales have increased by 23.7% while inventory for homes is down 25.7% in comparison to the previous year. The increase in demand and limited supply is leading to frequent bidding wars between potential buyers.
The main reason why buyers who have been searching for homes are facing challenges are because they are getting outbid by other offers. There are 360,000 fewer single family residences for sale today than there were at time last year. It is estimated that 40% of buyers have even been outbid for a home that they were trying to purchase.
What does this mean for sellers?
Sellers have immense leverage while negotiating terms with buyers. Sellers have the power to influence buyers to move closer to their position during the home buying process. Sellers have the ability to receive more benefits or eliminate costs on their side of the deal.
What does this mean for buyers?
In today’s market, buyers have a goal to buy a home now before prices appreciate. Buyers are also wishing to make a move to take advantage of low mortgage rates.
The current homeowners have tremendous leverage in the process of selling their home. This leverage does enable the seller to sell at the best possible price. If you are interested in selling today, connect with a Seven Gables Advisor to learn more about your benefits.