How has being in a seller’s market affected us? Today I’ll discuss this.
Selling your home? Get a home valuation.
Buying a home? Search the local MLS.
The key differences between a buyer’s and seller’s market are time and inventory. If there are less than six months of inventory available in the market, then it’s a seller’s market. If there are around six months of inventory, it’s a balanced market. If there are more than six months of inventory, then it’s a buyer’s market.
Currently, ours is a pretty extreme seller’s market—we have 2.7 months of inventory. Here are further characteristics of a seller’s market that we’re experiencing right now:
1. The median sales price is higher. The price of homes is a bit higher due to demand outstripping supply; sellers can raise their listing prices because buyers don’t have as many options.
2. Sellers get more of their asking price. When there is more competition for homes, sellers can benefit.
"Currently, ours is a pretty extreme seller’s market."
3. Fewer price reductions. Fewer options for buyers means that when a good option does hit the market, it’s gobbled up immediately.
4. There’s less time on market. Again, buyers with pent-up demand pounce on fairly priced homes in good condition once they’re active on the market.
As a real estate professional, it’s my job to position you for success, and understanding the type of market we’re experiencing is important. If you have any more questions about our market or selling a house, don’t hesitate to reach out to me. In the meantime, keep an eye on my blog for more great content.