What Does It Mean To Be in a Seller's Market?

Dated: March 29 2021

Views: 13

What It Means To Be in a Sellers’ Market

What It Means To Be in a Sellers’ Market | MyKCM

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.

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):What It Means To Be in a Sellers’ Market | MyKCMWhen 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.

Bottom Line

Home prices are appreciating 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.

Blog author image

Jason Shafor

Jason is a born and raised Flagstaff native. He has over 15 years of home building experience in Northern Arizona. Jason takes the same blue collar, hard working habits he developed and implements the....

Latest Blog Posts

Demand for Vacation Homes Is Still Strong this Year

Demand for Vacation Homes Is Still StrongThe pandemic created a tremendous interest in vacation homes across the country. Throughout the last year, many people purchased second homes as a

Read More

This Year Homeowner Wealth Increases Through Growing Equity

Homeowner Wealth Increases Through Growing Equity This YearBuilding financial wealth and stability remains one of the top reasons Americans choose to own a home, and as a homeowner, your

Read More

The Pre-Approval Makes All the Difference When Buying a Home

Pre-Approval Makes All the Difference When Buying a HomeYou may have been told that it’s important to get pre-approved at the beginning of the homebuying process, but what

Read More

Five Things Homebuyers Need to Know When Making an Offer

5 Things Homebuyers Need To Know When Making an OfferWhen it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren

Read More