Why The Seller’s Market Is Good for Your Bottom Line
Thinking about selling your house in West Michigan and wondering if now’s a good time to do it? Here’s what you need to know. There still aren’t enough homes on the market for all the buyers looking to purchase.
So, what does that mean for you? To keep it simple, it means it’s still a seller’s market.
How the Real Estate Market works:
Neutral Real Estate Market – when supply and demand is balanced. Basically, there are enough homes to meet buyer demand based on the current sales pace, and home prices hold fairly steady.
Buyer’s Real Estate Market – when there are more homes for sale than there are buyers. In a buyer’s market, sellers may have to do price cuts to reignite interest in their home, and prices may go down. We haven’t seen this for years since there is still a national housing shortage that will take at least a decade or more to close the gap.
Seller’s Real Estate Market – Just the opposite of a Buyer’s Market. A Seller’s Market is when the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find a home. That creates increased competition among purchasers which can lead to bidding wars. If buyers know they may be entering a bidding war, they’re going to do their best to submit a very competitive offer. Thus driving the final sale price of a home upward.
This situation is a reality in markets all across the US. West Michigan specifically is still a very hot sellers market driven by high demand and low inventory.
The graph below uses data from the National Association of Realtors to show just how deep we are in the seller’s market territory:
What Does the Seller’s Market Mean for You as a Seller?
As a seller, the Michigan market is still working in your favor. If you lean on an agent’s professional advice on listing preparations and pricing competitively, your home should grab the attention of many eager buyers. Meaning you’ll likely get more than one offer and see your house sell quickly for top dollar. As a recent article from Ramsey Solutions explains:
“A seller’s market is when demand for homes is higher than the supply of homes. And that’s still the case right now. If you’re planning to sell your house, you can expect to sell it fairly quickly for close to your asking price—as long as your asking price is realistic for the current market.”
Jenna’s Bottom Line
Today’s housing market is very favorable for a Seller’s bottom line. If you’re ready to list your home, let’s connect so you can start making your moves!
