The answer is “It couldn’t be better!” To just say it is a seller’s market seems like an understatement right now for a couple of reasons. Any time demand is higher than the supply, sellers have the advantage. Right now it is oh so true in the housing market!
There could be many reasons for the current climate in the housing market. Increase purchasing power in the form of a healthy job market is probably the biggest factor in this equation. Perhaps because of the job market, some young professionals (fondly referred to as millennials) are changing their minds about not owning housing. Some of them are now deciding it’s time to purchase homes. That could be in part due to the availability of jobs. It could also be that this segment is getting a little older, probably have student loan debt under control, and may even be thinking of starting a family.
Whatever the magic combination that has produced this environment, new listings were up over 8% in April, but the inventory for homes fell over 12%. With the median home price hovering around $250,000, current inventory is selling very quickly; days on the market has dropped to an average of 45 days.
While new building of homes is up, it is not reducing the gap between supply and demand fast enough and pricing is typically $300,000 and up on new homes in this area. This shortage of affordable inventory is creating buyer competition primarily in homes under $400,000.
What does that mean for potential sellers?
If you are ready to sell, make sure your home is in tip top shape so you will get the most out of this seller’s market. Read What Home Buyers Do Not Want to gain insight into what issues with your home you should take care of before putting your home on the market. Then contact your friendly, reliable real estate listing agent and get it listed!
If you’ve been toying with the idea of selling, whether you are bursting at the seams in your current home or thinking that it’s time to downsize, perhaps it is time to stop toying with the idea and act now. Rising mortgage rates may be a sign of a healthy economy, but at some point they will curb the appetite of some buyers and your window of opportunity could pass you by before you get your ducks in a row and get your home on the market. If it seems like a daunting task or if you really were targeting selling a couple years from now…..seriously, think again. The propensity for top dollar will not last forever.
What does this mean for potential buyers?
If you are ready to buy now, you will need to be prepared to spend some time with a qualified real estate broker in order to catch the right house before it’s sold. Some houses, especially those in the $250,000 range, can receive multiple offers the minute they go on the market and are sold in less than a week. Your agent can advise you on how to be successful in this fast-paced market.
Get together with a mortgage lender and get pre-qualified before you even start looking. That way you can act fast and you will know exactly how much home you can afford. Be prepared to pay close to, if not list price. Bidding is competitive. Cash offers and pre-qualified buyers generally have the edge.
In order to be quick with your responses to new listings, it is crucial that you work with a seasoned broker who will be on top of your search for a home. A buyer’s agent does not work for the seller. They work exclusively for buyers, so your needs will be their driving force.
If you are considering selling your home, we would love to help. At Linda Craft & Team, REALTORS®, we have over 30 years of experience developing our method of selling homes in the Greater Raleigh area providing sellers with exceptional guidance when placing their homes on the market. As the #1 real estate team in the Triangle, let us equip you with our wealth of knowledge and the tools needed to make your home fly off the market.
Schedule an appointment with us today at 919-235-0007 or review our selling resources for a full listing of all of our services!