As theres more and more talk about thereal estate marketcooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans tosell your house. If youre thinking of making a move, you should know the market is still anything but normal.
Even though the supply ofhomes for salehas been growing this year, theres still a shortage of homes on the market. And that means conditions continue to favor sellers today. Thats because the level ofinventoryof homes for sale can help determine if buyers or sellers are in the drivers seat. Think of it like this:
- Abuyers marketis when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.
- In asellers market, its just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.
- Aneutral marketis when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
And for the past two years, weve been in a red-hot sellers market because inventory has been near record lows. The blue section of this graphhighlightsjust how far below a neutral market inventory still is today.
What Does This Mean for You?
Ed Pinto, Director of theAmerican Enterprise Institutes Housing Center,gives a perfect summary of whats happening in todays market,saying:
Overall, the best summary is that well move from a gangbuster sellers market to a modest sellers market.
Conditions are still in your favor even though the market is cooling. If you work with a Seven Gables agent to price your house at market value, youll find success when yousell your housetoday. While buyer demand is softening due to higher mortgage rates, homes that arepriced rightare still selling fast. That means your window of opportunity to list your house hasnt closed.
Bottom Line
Todays housing market still favors sellers. If youre ready to sell your house, connect with a Seven Gables advisor so you can start making your moves.
