Real estate markets can be balanced, with home buyers and home sellers having equal leverage or advantages, and they can also be lopsided. In the past year, we’ve seen the housing market across America shift to being a Seller’s Market. You’ve heard the phrase “a golden opportunity” or “housing bubble” thrown around in conversations. As the next person on the block sells their home for higher than the last sale, people wonder: how long will this last?
Supply and Demand
A seller’s market is marked by constrained supply. When there are not enough homes for sale to satiate the home buyers looking for a property, each home for sale receives multiple showings, more offers, and ultimately the terms and price of the home goes up.
For the past 6 months, the housing market has performed strongly:
- 33 percent of sellers sold at list price
- 49 percent of sellers sold above list price
- Roughly 1 in 5 sellers were on the market for less than 2 weeks before they went into escrow
28 percent of sellers required all-cash payments, no contingencies and/or less than 30 days to close, while 14% opted for selling their homes completely “as is,” leaving buyers without the flexibility available in less competitive markets.
One third of sellers had not planned to sell so soon or even at all, but that the opportunity to sell their home quickly and make a profit was too much of an incentive. Home owners went from “Nope, not interested in selling” to “When will we get this opportunity again?”
The Summer Forecast
What is ahead in July, August, and September? Home buyer demand continues to stay strong and is only tempered by buyer burnout — the frustration of rejected offers and continuing to not find a property — and home owners will decide to become home sellers.
Do you want to find out what your home is worth? Click this link to find out your home’s current value.
The question facing many homeowners is: What is the tipping point? What is the dollar amount that if I can sell my home for $____, then I would move?