While the housing market may have toned down from the frenetic pace of the past, it remains firmly in favor of sellers due to the persistently low supply of homes for sale. But what does this actually mean for you? And why are current conditions so advantageous if you're considering selling your house?
The most recent Existing Home Sales Report from the National Association of Realtors (NAR) unequivocally highlights the startlingly low level of housing supply. Housing inventory is gauged by both the number of homes available on the market and the months' supply, which represents how long it would take to sell all those available homes based on the current demand. In a balanced market, you'd typically find a roughly six-month supply of homes. Presently, we're grappling with just a three-month supply of homes at the current sales rate (as depicted in the graph below):
As the graphic illustrates, given the existing pool of homes, it's evident that we're still in a seller's market.
In reality, we are far from what could be deemed a balanced market. In fact, the current months' supply is half of what is considered standard in a normal market. This means that there are simply not enough homes available to meet the demands of today's buyers.
Lawrence Yun, the Chief Economist for NAR, succinctly states:
"There are simply not enough homes for sale. The market can easily absorb a doubling of inventory."
So, How Does Being in a Seller's Market Benefit You?
For sellers, these market conditions present a distinct advantage. Currently, there exists a pool of ready, willing, and able homebuyers. Moreover, since there's a dearth of homes hitting the market, the ones that do become available act as magnets for these eager buyers.
If you decide to work with a local real estate agent to list your house in good condition and at the right price, it could very well attract significant attention, possibly even resulting in multiple offers.
Today's seller's market places you in a favorable position when it comes to selling your house. With the limited supply of homes, your property will shine brightly in the eyes of motivated buyers who are yearning for more options. It's prudent to connect with a local real estate agent to gain insights into your specific area's dynamics as you prepare to enter the market.