What is a Sellers Market
By Chris Streett
What is a Sellers Market?
Perhaps you’ve heard the term Sellers Market being thrown around the media or party conversations, but you don’t know exactly what that means?
A sellers market is defined as:
When supply is less than demand, homes will be higher priced and more attractive to home sellers in the market.
So what does this mean for you? It means it’s a great time to sell your home!
Recipe for a SALE!
- Increasing Interest rates
- Increased Home prices
- High Demand for Houses
- Decreased Inventory of Homes
Mix well and watch the value of your home rise!
Interest rates are increasing
The interest rate on 30-year fixed-rate mortgages has risen to 4.17% in early 2017, as opposed to 3.72% in early 2016. The current rate is not exactly high by historical standards, but the uptick is that uncertainty of how high it will go makes for motived buyers. As of October 2016, home prices nationwide had experienced a 5.6% year-over-year gain.
Prices are up
“With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends,” said David Blitzer of S&P Dow Jones Indices. (Source CNN.com)
Nationwide, the median home price was $225,000 during the first quarter of 2017, the report stated, up 13% from a year ago.Homeowners who sold in the first three months of this year saw an average price gain of $44,000 from purchase, according to a report from Attom Data Solutions. That’s the highest gain since 2007. (Source CNN.com)
Demand is up
The climb in prices and interest rates seems to have many homebuyers thinking, “Grab it now before it gets even more expensive!” According to realtor.com, home listing views in December 2016 were up by 40% to 80% compared to the same time in 2015, despite the fact that December is historically the slowest time of year for home sales.
Inventory is down
Realtor.com also reports that active inventory on the website was down 11% in December of 2016 compared to inventory in December 2015.That’s after 51 straight months of already below-normal inventory levels and it’s still decreasing. (Source CNN.com)
Going, going, gone
Not only are home prices rising, they’re moving fast. On a national level, homes sat on the market for an average of 45 days in the first quarter, down from 84 during the same time period in 2011, according to data from Clear Capital.
In the five fastest-moving markets, homes are on the market for less than 21 days. (cnn.com)
3 advantages of selling in a Sellers Market.
- Higher Sales Price
- The Right to Refuse Concessions
- Sellers Dominate the transaction
In a seller’s market sellers can negotiate shorter inspection periods as well instructing buyers to waive certain contingencies such as appraisal or loan contingencies. http://realtytimes.com/advicefromagents/item/33212-3-advantages-of-selling-in-a-sellers-market
Ways to take advantage of a Sellers Market
Prep your home for sale. This may or may not involve staging, but it absolutely should include cleaning the home from top to bottom. Make some needed updates to flooring, lighting or hardware. Punch up your curb appeal by power washing the exterior, add some landscaping and repaint shutters or doors if needed. This an inexpensive way to entice buyers and possibly get multiple offers some even over asking price.
Keep us in mind
Whether you’re just thinking about selling your home or are ready to take the plunge and use this Sellers Market to your advantage, we here at Streett Hopkins have the expertise to get you the best possible price for your home.
Chris has been servicing buyers and sellers in the Baltimore Metro area since 2001 and has more than $140 million in sales. He is a full-time Realtor who focuses on customer satisfaction. Chris is very accessible, a must for success in the real estate arena.Whether you are buying, selling, relocating, or renting he will provide you with the highest level of service for all of your commercial and residential needs.