DOUG'S SPIN ON REAL ESTATE: January 2021 It's a Seller's Market Out There!
WE ARE IN A SELLER’S MARKET
There are really three types of real estate markets which include a Seller’s Market, a Balanced Market and a Buyer’s Market. We are currently in a Seller’s market which is defined as a market with low supply versus buyer demand. In other words, there are fewer homes for sale and more buyers out looking for their dream homes.
WHY ARE WE EXPERIENCING A SELLER’S MARKET?
One of the reasons that Buyers are emerging is the historically low interest rates. With their increased purchasing, more potential Buyers qualify for homes. Why aren’t more Sellers taking advantage of the glut of Buyers waiting to buy a home? There are a couple of reasons for fewer homes on the market.
First, the coronavirus pandemic certainly slowed the number of homes coming to market as some Sellers have chosen to list their homes at a later date. The pandemic has also driven more people to work-at-home status, changing commuting patterns and compelling potential Sellers to remain in their homes. Sellers also have more equity in their homes, giving them the opportunity to improve their homes and stay put instead of listing and buying up.
HOW DOES THIS MARKET BENEFIT ME AS A SELLER?
It’s an exciting time to be a Seller. Many homes in our area are selling quickly and with multiple offers especially if the property is priced competitively, is in great condition and is ready to sell. In that scenario, you may get more than asking price. There are no guarantees, of course., and the market can change. But currently, Sellers are in the driver’s seat and most are able to command a good price for their homes.
I’M A BUYER AND I’M FRUSTRATED. WHAT CAN I EXPECT IN THIS MARKET?
For buyers, the lower supply and the resulting multiple offer situation can be very frustrating. Even a great offer above asking price may not be accepted which results in disappointment and heartache.
The key thing to remember is that there are new homes coming on the market everyday. Don’t get discouraged. Keep looking, keep trying. With lower interest rates and the potential to work remotely, you may be able to find the home of your dreams in a less expensive area for a better price than initially imagined.