We hear the term sellers’ market being used very frequently in the real estate industry and it may be hard to decipher what this truly means. So, this leads us to ask the question: What is a sellers’ market? This season has been proven to be the ultimate sellers’ market because it is the optimal time for sellers to make their property available to potential buyers who are searching for their dream home.
The National Association of Realtors (NAR) shows the inventory of houses is staying constant at a 2-month supply given the current sales pace. Generally, a 6-month supply is necessary for a neutral market. A neutral market is described as a time in the market when there are enough homes for sale in the market to satisfy the amount of active buyers.
We are witnessing an extremely competitive market with inventory remaining at an all time low. Buyers must submit qualifying offers and should prepare themselves for bidding wars. Seller’s are now in the driver’s seat, meaning that they are in the best possible position to negotiate the ideal terms that work best for them. Sellers putting their house on the market will draw a lot of attention from buyers, and the possible bidding wars are leading to home prices appreciating to new heights.
Buyers are being compelled to enter the market with such low mortgage rates being offered and the many changes in lifestyle due to the effects of the global pandemic. Buyers were forced to reevaluate where they live and what they need, now that more people are attending work and school remotely. This is now leading to buyers who are willing and ready to take action in this competitive market.
With such high demand in the housing market, now is the time to make a move and sell your home. Making your home available this season will give you the opportunity to reach more buyers. Buyers will then actively compete against one another to purchase your home, which in turn will appreciate the price of your home.