Even though activity in the housing market has slowed from the frenzy that was the ‘unicorn’ years, it’s still a seller’s market because the supply of homes for sale is so low. But what does that really mean for you? And why are conditions today so good if you want to sell your house?
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows that the housing supply is still astonishingly low. The number of available homes on the market measures housing inventory. It’s also measured by months’ supply, meaning the number of months it would take to sell all those available homes based on current demand. In a balanced market, there’s usually about a six-month supply. Today, we have only about three months’ supply of homes at the current sales pace (see graph below):
As the visual shows, given the current inventory of homes, it’s still a seller's market.
Today, we’re nowhere near what’s considered a balanced market. In fact, the current month’s supply is half of what’s typical of a normal market. That means there aren’t enough homes to go around based on today’s buyer demand.
As Lawrence Yun, Chief Economist for NAR, says:
“There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”
How Does Being in a Seller’s Market Benefit You?
Sellers, these conditions give you a real edge. Right now, some buyers are ready, willing, and able to purchase a home. And, because there's a shortage of homes up for sale, the ones that hit the market are like magnets for those buyers.
If you work with a local real estate agent to list your house right now, in good condition and at the right price, it could get much attention. You might even end up with multiple offers.
Bottom Line
Today’s seller’s market gives you a big advantage when you sell your house. Because supply is so low, your house will be in the spotlight for motivated buyers craving more options. Let’s connect so you understand what’s happening in our local area as you get ready to enter the market.
