What is a Seller's Market?
Ready to sell your home? Maybe you're waiting for it to become a "seller's market" before you list. So, what is all the hype about and what does it actually mean?
A Sellerâ€™s market is when the demand (people looking for homes) is larger than the supply (available homes on the market). Or in other words, there just arenâ€™t enough homes on the market as there are people looking to buy homes. To determine a sellerâ€™s market, we look at the areaâ€™s absorption rate. A sellerâ€™s market is anytime the absorption rate is less than 3 months.
Some other features of a sellerâ€™s market include:
- Many buyers
- Homes sell very quickly
- Prices usually increase
- Multiple offers lead to bidding wars
- Conditional offers may be rejected
The sellerâ€™s market is especially good for people selling their houses! Sellerâ€™s can increase their prices and buyers are more willing to pay more because of the low inventory of houses on the market.
But, if youâ€™re looking to buy and itâ€™s a sellerâ€™s market, donâ€™t be too discouraged! Itâ€™s still possible buy a home in a sellerâ€™s market. But itâ€™s going to take some work.
Buyerâ€™s - work with a seasoned real estate agent â€śwhen you are competing against other buyers in a hot market, itâ€™s vital to be â€śoffer readyâ€ť and working with a professional realtor will save you time, money and a lot of stress. Be prepared with your financing.