Low inventory is good news for sellers; read on to learn how this current real estate market is great for sellers!
The house inventory is very low compared to the number of buyers that are out shopping. According to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):
“There is no shortage of hopeful, potential buyers, but inventory is historically low.”
During times like this when the demand for housing is higher than the number of homes on the market, it’s the perfect time for homeowners to consider selling their home. These are 3 different ways that the current real estate market is a plus for home sellers. Consider taking advantage of this awesome seller’s market if you are thinking of making a move this fall!
1. Rising Prices
With a huge surge of homebuyers currently on the market but not enough housing inventory, homebuyers are increasingly entering into bidding wars to buy their dream home. Lot’s of buyers on the market with not enough homes to buy drives up home prices. When you sell during this time, you have a much higher chance of getting more for your home than you thought was possible.
2. Larger Return on Your Investment
Higher home prices means that homes are rapidly gaining equity. In the latest Homeowner Equity Insights Report, CoreLogic explains:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity.”
This huge growth in home equity means that you can use that money to put towards a down payment on your next home or you can put that money away into savings.
3. Improved Terms
Whenever the real estate market swings towards being a seller’s market, you as a homeowner have a huge advantage. You are more likley to be able to sell on your preferred terms and buyers are usually more inclined to agree to those terms just so they can secure the purchase of their dream home.
Is low inventory really that big of a deal?
It is, especially if you are looking to sell your home at a specific time. Today’s sellers market gives homeowners huge negotiating power. You should keep in mind though, that seller’s markets don’t last forever. We can safely anticipate the market moving more towards buyers next spring and summer as more homeowners look to sell. If you have been contimplating a move, now is truly the time to sell!
Bottom Line
If you are interested in making a move and taking advantage of the current market, give me a call! I can help you determine what your home is really worth and help you navigate a smooth move. Click here for home staging tips!