Most of the country can tell you that today’s market is a sellers’ market. Many can tell you this but do they really know what that means and all it entails?
The first catalyst for this super hot market is the shortage of inventory. The number of homes available for sale can determine the housing market. According to the National Association of Realtors (NAR) Existing Home Sales Report housing inventory is currently very low. In today’s market, there is only a 2.6-month supply of homes on the market. The average supply that is defined as normal is a 6-month supply. If there are more than 7 months of inventory it is safe to say it is a buyer’s market, 6-7 months of inventory is a neutral market, less than 6 months of inventory is a sellers’ market.
Today’s market is very hard for a buyer to work in. Bidding wars are creating strong competition between buyers. That means that buyers are putting their best foot forward and giving their best offer as the first offer. This war is pushing home prices up fast and sellers definitely have the upper hand in negotiating.
The good news for the buyers in today’s market is the low mortgage rates. Even with low inventory and high prices, low mortgage rates can help navigate this seller’s market. If you are in the market to list your home, now is a perfect time. Contact a local Realtor who can help you with the sale of your home.
