Are You Looking to Buy or Sell? The Answer May Depend on the Market
With the housing market on a constant roller coaster the last two years, one of the questions I hear frequently is are we in a buyer’s or seller’s market? So, what is the current status of the market?
According to the National Association of Realtors, the housing market is currently in a seller’s market due to the low supply of homes on the market. But what does that actually mean and why are conditions so good to list your home today? It has to do with the absorption rate. With the current low inventory, today we have less than one month’s supply of homes, based on the current sales pace. Historically a 6-month supply is a “normal” or “neutral” market which means there are enough homes available for active buyers. If we were in a buyer’s market, there would be an excess of inventory, and more homes on the market than buyers wanting to purchase them.
As a seller, when there is a low supply of homes, you are in a better position, of course, to get the terms you want in the sale.
As a buyer, it can be harder for you to purchase at the terms you are hoping for, due to the increased competition from many other home buyers that have the same goal.
This can create the multiple offer scenario we all became familiar with in 2020 and early 2021. And, once again, we are back to multiple offers, on most homes. With that said, there are still ways to achieve your dream of home ownership. All it takes is some forward planning and a strategy to make it happen.
According to National Association of Realtors Chief Economist, Lawrence Yun and I quote “Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.” With that said, there are still buyers who are ready, willing, and able to purchase a home and if you list your home right now, these favorable conditions will help you get the most from your investment. In fact, for a number of homes that we have recently listed, we were able to negotiate prices, for our sellers, that were $50,000 to $65, 000 more, than they ever thought possible.
Of course, we do not have a crystal ball to see how the year plays out, so if you are thinking of either buying or selling, please reach out to my team and I so we can help strategize your next move.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2023 real estate forecast, don't hesitate to reach out - we're happy to help!