We’re in a Sellers’ Market. What Does That Mean?

<article class="post-660683 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-660683"><span class="entry-date">March 30, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">We’re in a Sellers’ Market. What Does That Mean?</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=We%E2%80%99re+in+a+Sellers%E2%80%99+Market.+What+Does+That+Mean%3F&url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fwere-in-a-sellers-market-what-does-that-mean%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="We’re in a Sellers’ Market. What Does That Mean? Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230330-we-are-in-a-sellers-market-what-does-that-mean-KCM.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>Even though activity in the housing market has slowed from the frenzy we saw over a year ago, today’s low supply of homes for sale is still a sellers’ market. But what does that really mean? And why are conditions <a href="https://www.simplifyingthemarket.com/2023/03/08/2-things-sellers-need-to-know-this-spring/" rel="noopener noreferrer" target="_blank">today</a> so good if you want to list your house?</p>
<p>It starts with the <a href="https://www.simplifyingthemarket.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">number of homes</a> available for sale. The latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank"><em>Existing Home Sales Report</em></a><em> </em>from the<em> National Association of Realtors </em>(NAR) shows housing supply is still astonishingly low. <strong>Today, we have a 2.6-month supply</strong> of homes at the current sales pace. Historically, a <strong>6-month supply is necessary for a ‘normal’ or ‘neutral’ market</strong> in which there are enough homes available for active buyers <em>(see graph below)</em>:</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230329/20230329-months-inventory-of-homes-for-sale-MEM.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230329/20230329-months-inventory-of-homes-for-sale-MEM.png"/></a></p>
<h4><strong>What Does This Mean for You?</strong></h4>
<p><span style="color: black;">When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find one to purchase. That creates increased competition among purchasers and keeps upward pressure on prices. And if buyers know they’re not the only one interested in a home, they’re going to do their best to submit a very attractive offer. As this happens, </span><a href="https://www.simplifyingthemarket.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">sellers </a>are positioned to negotiate deals that meet their ideal terms. Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/newsroom/existing-home-sales-surged-14-5-in-february-ending-12-month-streak-of-declines" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”</em></p></blockquote>
<p><span style="color: black;">Right now, there are still </span><a href="https://www.simplifyingthemarket.com/2023/03/16/what-buyer-activity-tells-us-about-the-housing-market/" rel="noopener noreferrer" target="_blank">buyers</a> who are ready, willing, and able to purchase a home. If you list your house right now in good condition and at the <a href="https://www.simplifyingthemarket.com/2023/03/29/4-key-tips-for-selling-your-house-this-spring/" rel="noopener noreferrer" target="_blank">right price</a>, it could get a lot of attention from competitive buyers.</p>
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