It’s a seller’s market Where are the sellers? That is the main question on everyone’s mind. For the first time in years, across the nation, the housing market is finally tipping in favor of home sellers, yet homes for sale are scarce. As stated in a recent release from the National Association of Realtors® (NAR), “Total housing inventory at the end of January fell 4.9% to 1.74 million existing homes available for sale, which represents a 4.2-month supply.” With this low level of supply, it is clearly a seller’s market.
Though credit requirements are more stringent, funds to borrow are available and buyers are anxious to take advantage of historically low interest rates. Lawrence Yun, NAR chief economist, said: “Buyer traffic is 40% above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country.”
For those potential home sellers who are waiting for prices to dramatically increase to put their home on the market, think again, because your competition may be thinking the same thing. Prices are currently gaining strength because indemand buyers are rushing to purchase the homes that are currently available. Because of this demand, homes on the market today are selling much quicker and at higher asking prices due to multiple bids and bidding wars.
Be forewarned, that as more homes enter the market for sale and more competition exists among home sellers, prices may not dramatically increase and time on the market could be months longer. Additionally, according to a recent Newsday article, applications for building permits rose nationwide to an annual rate of 925,000 in January and Northeast building permits increased 10.1% between December and January. New homes mean fierce competition for home sellers.
There is a clear window of opportunity for sellers right now that should be taken advantage of. If you want to sell your home and are not sure if there is enough equity, call me and I will provide you with a Competitive Market Analysis. The analysis will provide you with in-depth details about your competition such as median price and time on the market. With this tool, I will build a price marketing strategy for your home.
For homebuyers, stay resilient. Call me and I can help you find your dream home in your price range, negotiate on your behalf, and walk you through the sales process. Arm yourself in advance by obtaining financing. If you have questions on how to do so, please ask me and I can refer you to a trusted mortgage specialist.
For sellers on the fence, and buyers facing tough competition, call me today. I am here to help you navigate and negotiate.