It's a seller's market when there are more buyers than there are homes for sale, and prices are rising.
The housing market has been on an upswing lately and properties are selling very quickly. If you haven't been following the goings-on in this industry, there's a chance you've heard about it from other news sources
The housing market has been steadily on the rise and this is good news for people who want to sell their home. In fact, just last year, there was an increase of more than 12% in the number of homes that sold. The trend has only continued as the housing market grows stronger each year.
There are less homes on the market that there usually are this time of year. The latest Existing Home Sales Report from the National Association of Realtors shows an unusually low supply to choose from.
The housing market is in an imbalance. In a normal or neutral market, a six-month supply of homes is necessary. However, in today’s market, we have a 2.6-month supply of homes at the current sales pace. This means that there are not enough houses and people are buying them faster than they can be built.
When there are not many available houses for sale, it's much harder for buyers to find homes they like. This results in more competition--- meaning that buyers will have to bid higher and higher prices to secure the house.
When buyers know they'll be participating in a bidding war, they go all out to submit attractive offers with hopes of winning. As this happens, home prices rise and sellers end up in the best place to strike deals with optimal terms.
Right now, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and the ongoing rise in remote work have prompted buyers to think differently about where they live – and they’re taking action.
Now can be the time to buy a home. Mortgage rates are low and the rise of remote work has made it possible for people to buy homes without having to uproot themselves from their current city. This is a great time to get into the market before prices rise even more and before mortgage rates go back up.
If you want to sell your home, the best time is when there is still a lot of supply on the market. Supply usually falls and rises over time.
How Long Will The Sellers Market Last?
The sellers market is not going to last forever. In the past few decades, we have seen a change in the job market; the number of jobs for people who work with their hands has decreased dramatically.
In its place, we have seen an increase in knowledge-based jobs that require more skill and education than before. This has caused a disproportionate gap between the numbers of people who are qualified for these jobs and those who are not.
The sellers market is not going to last forever because there is an imbalance in needs vs. skillsets available for it to operate. It's only a matter of time until things change and we see a buyers market emerge instead of this sellers one that we're currently experiencing.
Most Homes Are Selling Over Asking Price
It is clear that sellers are becoming more confident with their pricing and are selling for more than what they hoped to gain.
While this sounds like a good thing, it can also be the cause of some problems. Buyers are able to negotiate less since they know that homes will sell for so much higher and they have no choice but to pay the higher price. Sellers who overprice their homes are either not able to find a buyer or need to lower the asking price in order to get an offer from a buyer who is willing to pay a higher amount.
The real estate market has been going strong for the past few years. Across the nation, houses are selling at higher prices than the asking price. There are many factors that can contribute to this phenomenon such as low unemployment, booming economy, and shortage of homes on the market.
A Home is a Top Priority for American Households
American households are prioritizing home-ownership. In the past few years, it has become a top priority for most Americans because of its stability and sense of security.
This is because homeownership offers a safe haven from inflation and economic downturns as well as providing a place to live, free from the hassle of finding housing.
As we know, there’s been some turmoil in the housing market in recent years but that’s not deterring homeownership as an investment or lifestyle priority for American households.
Renters are looking to buy their own homes and secure a fixed monthly payment. Home mortgage rates have never been cheaper. This is a good opportunity for those who are looking to take the plunge and get into the housing market. Interest rates have not been this low in more than 10 years!
Bottom Line
There are a lot of opportunities for home sellers in today’s market. Listing your house now will give you the best chance at finding serious buyers who will buy it for the right price.
Let’s connect to discuss what to expect with the selling process in Arizona.
