Exploring the Sellers’ Market - What You Need to Know

Exploring the Sellers’ Market - What You Need to Know
Are you thinking of buying or selling a home? The housing market is constantly changing, and right now it’s in a stage known as a “sellers’ market.” But what exactly does this mean? Whether you are looking to purchase your dream home or put yours on the market, understanding the concept of sellers' markets will be beneficial for both buyers and sellers. In this blog post, we'll explain how a seller’s market works and look at the advantages and disadvantages that come with it—so you can make informed decisions about entering into real estate transactions. Read on for an easy-to-understand guide to understanding what kind of hand you are playing in today's competitive housing market!
Explain what a seller's market is and how it is different from a buyer's market 
A seller's market is a situation where there is an imbalance in the supply and demand of goods or services, resulting in higher prices and more power for sellers. This can happen when a particular item is scarce or sought after by many buyers, giving those who possess it leverage to command a higher price. Alternatively, if the economy is doing well and people have more disposable income, more people are buying and driving up competition, therefore increasing prices. This scenario also benefits sellers as they can choose to increase their prices or sell only to those willing to pay higher amounts. In contrast, a buyer's market occurs when there is an excess of goods on the market, resulting in lower prices and less bargaining power for sellers. An abundance of products usually leads to price wars among competitors which benefit buyers who can access the same quality product at lower rates. Ultimately, a seller's or buyer's market depends on the balance of supply and demand; when there are both enough buyers and sellers but with varying interest in buying and selling, it results in a balanced market that favors neither buyer nor seller.
We’re in a Sellers’ Market. What Does That Mean?
Activity in the housing market has certainly cooled off since we saw a frenzy of activity one year ago. However, the low supply of homes for sale is still driving prices and causing a boom in the seller's market…but what exactly does that mean to homeowners? 
Just how rare are available homes on the market? According to the National Association of Realtors (NAR), we only have a 2.6 month supply of existing houses ready for purchase at today's sales pace. In general, having a 6-month supply of inventory is necessary in order to bring about an equilibrium formation and protect competitive marketing opportunities for potential buyers. This fact is well exemplified by the scets outlined below:
The current low supply of homes for sale has made it much harder for buyers to find a place to buy. The competition among potential purchasers has pushed prices upwards as they understand they need to make an attractive offer in the face of such demand. Sellers can use this as leverage, creating deals that match their preferences. 
Lawrence Yun, Chief Economist at the National Association of Realtors, confirms this fact: "Inventory levels are still at historic lows, with multiple offers being made on many properties". 
Buyers remain ready and willing to purchase a good home at the right price-- if your house is in good condition and priced correctly, you may get a lot of interest from excited buyers!
Final Thoughts:
For homeowners looking to make a move, now is the time! With today's competitive market conditions, you could be in for some serious profits. Let's chat and get your house on the listing before someone else snaps it up – don't miss out on this great opportunity!

(540) 525-6671

Real estate photo

12923 Fitzwater Dr. Nokesville, VA 20155 
(703) 594-3800 | jacobsandco.com

Post a Comment