What it Means to be in a Seller's Market
You have probably been hearing the term “Seller’s Market” a lot lately - and if you follow us, we have been talking about this topic a lot. But what does it actually mean to be in a Seller’s Market?
If you’ve given even a casual thought to selling your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is available for buyers who are looking for homes to purchase.
The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply at the current sales pace, and that is even less in the Boulder/Denver Housing Markets. Check out the chart below to see the new listings in March. Less listings than ever and Buyers who want to buy means that there are incredible opportunities for you as a Seller.
Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):
When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.
As this happens, home prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, it will likely get a lot of attention from hopeful buyers.
Today, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.
In the Boulder Real Estate market, we are seeing record appreciation and many homes are selling for over the listing price. We can help you maximize your return by pricing correctly and negotiating on your behalf, to ensure you are getting the most money and best terms.
Bottom Line
Home prices are appreciating at an incredible rate in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it. This means getting the highest price, and best terms - so you can negotiate things like timing and move on your schedule. In my 20+ years in this business, I have been through many markets, and I can honestly say I have never witnessed a better time to sell your home. If you are thinking that this could be a good time to make a move, I would love to explore your options and help you maximize on this incredible opportunity!