A Seller’s market is when the demand (people looking for homes) is larger than the supply (available homes on the market). Or in other words, there just aren’t enough homes on the market as there are people looking to buy homes. To determine a seller’s market, we look at the area’s absorption rate. A seller’s market is anytime the absorption rate is less than 3 months.
Some other features of a seller’s market include:
Homes sell very quickly
Prices usually increase
Multiple offers lead to bidding wars
Conditional offers may be rejected
The seller’s market is especially good for people selling their houses! Seller’s can increase their prices and buyers are more willing to pay more because of the low inventory of houses on the market.
But, if you’re looking to buy and it’s a seller’s market, don’t be too discouraged! It’s still possible buy a home in a seller’s market. But it’s going to take some work.
Buyer’s - work with a seasoned real estate agent “when you are competing against other buyers in a hot market, it’s vital to be “offer ready” and working with a professional realtor will save you time, money and a lot of stress. Be prepared with your financing.