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What Is a Seller’s Market?
A seller’s market is defined when there is more demand for homes than there is supply.
This is often a great time for homeowners to consider selling as they can get the highest prices, quick closes, and sometimes all-cash deals to facilitate a fast sell.
How Is It Used in Real Estate?
The term seller’s market is commonly used by news sites and real estate agents; you may even hear it from friends and family when they discuss real estate.
It could come up as you start to talk to agents and read up on real estate online or offline. Understanding this term as a seller can be a great advantage when researching when to sell.
Example
Amanda bought her first home about seven years ago. She has loved the property but has been hearing for the past three months that the real estate market has shifted. Her previous real estate agent tells her that it’s now a seller’s market and it could be beneficial to list her home for sale.
Amanda considers her options and decides it’s time to sell her home. She lists it for $150,000 more than what she originally bought it for and sells it in under 30 days!
What determines a seller’s market?
There are several factors, but the main factor is that there is more demand for homes than supply. This allows for sellers to have advantages like rejecting offers with subjects/conditions and even listing at a higher price than usual. Sometimes bidding wars can exceed thousands above the asking price.
The degree of a seller’s market can vary. If there is a significant surge in economic prosperity, real estate markets could see large increases in value from new buyers looking to enter the market, or current home owners looking to sell and changeeither an upsize or a downsize to their current property.
