W O W! What a week it's been!! I have been soo busy and I'm so blessed! I'm excited to take a minute and sit down and give ya some gooooood information this week! This topic is important for today's real estate market and why is that? Well because we are in the middle of a seller's market! Don't know what that means or why it matters? Sit tight and I'll tell ya why!!!
What’s it mean to be in a sellers market???
If you’ve entered the world of real estate any time lately then you may know by now that homes are selling Q U I CK! Even though we are in the midst of a pandemic, you heard correct.... Some homes aren’t listed longer than 24 hours much less a couple weeks or a month, it’s exciting stuff! I wanted to take this time to just give you a short blurb about being in a seller's market. If you want in depth information, I'd love for you to reach out to me, Sydney, so I can give you an in depth run down so you know what you're doing and how to do it! (Better yet, just let me do it all for ya so ya don't stress ;) )
Today I’m explaining our current market and what it means for buyers and sellers. Normally it’s classified between being a seller’s market or a buyer’s market. We are currently in a seller’s market which basically means there’s more real estate buyers in the market than there are sellers. When demand is higher than the supply, home prices increase, which benefits sellers. (YES! Supply and demand!!!) The real estate market goes up and down depending on the season we are in at that particular moment. There are usually a lot more homes listed for sale in the summer months (June - August) than any other time of year, that means that it could be a seller’s market in the winter but a buyer’s market by the time it warms up. Whether it’s a buyer’s market or a seller’s market also depends on the area you are in. The larger cities with a lot of available jobs and growing industries will often be a seller’s market, while those with struggling economies will be a buyer’s market!
One way to determine if it’s a buyer’s market or a seller’s market is to look at inventory, or the number of homes for sale. If inventory is low, it is most likely a seller’s market. No matter if you're buying a home, selling a home or trying to do both at the same time, understanding the seller's market will help give you an edge over the competition. A buyer's market, on the other hand, happens when there's ample supply but less demand. In a buyer's market, not only is there more inventory to choose from, but sellers must also compete harder for the attention of buyers. In a seller's market, it's the buyers who have to gear up for competition. The average time it takes a home to go from "listed" to "sold" shrinks. In the past, a home might have taken 11 weeks to sell, but in today's market, the average time on the market is just 3 weeks. Some homes may never be officially listed at all. meaning, they are under contract before they are ever listed or in some cases, advertised. Increases in home buying can signal an overall healthier economy which is wonderful news considering the health of the world right now.
Another obstacle with this current demand is that construction costs are continuing to skyrocket. "Lumber prices have increased dramatically, by about 25% over the last 12 months," says Robert Dietz, chief economist at the National Assoc of Builders. A labor shortage in the residential construction industry is also contributing to the fact that fewer homes are being built, Dietz adds. So, add all of this together and you can just say us REALTORS are all over the place! Offer after offer, showing after showing, we are the ones that are fighting for you and your family to get you into a home you love and to help you sale the one you've grown out of!
How to identify if your in a seller's market-
Asking vs Final price
Home prices over time
Things to do to get an advantage when making an offer-
Approval letter prepared
Less contingencies/ special stipulations