Friday, November 8, 2019 / by Elizabeth Sorensen
Everyone keeps saying this is a hot seller’s market...but what does that really mean?
Hi, I’m Elizabeth Sorensen with Haven Real Estate with your weekly market update for November 8th, 2019...and although we hear this a lot, I find that many people don’t realize what actually causes this and why we’ve been in such a hot market in Spokane for several years now.
When we talk about a buyer or seller’s market, it all really comes back to the very basic principle of supply and demand. If there’s not enough supply of homes to meet the buyer demand, we will continue to see the prices rise and stay in a seller’s market.
In real estate, we usually see a balanced market- one that equally favors both buyers and sellers, when we have about 5 ½ months of inventory.
Anything below that, and we start shifting to more of a sellers market. There are less homes than are needed to meet the current buyer demand.
As the pendulum continues to swing toward a seller’s market, you will see home prices rising steadily, multiple offers on homes and sales prices escalating over the asking price.
Just to drive this point home, in Spokane county this week we are hovering at just above one month of inventory. That is all of the stick-built homes on 1 acre or less. Only 200 total new listings came on in the last 7 days.
Can you see why the prices have been steadily increasing over the past few years?
Now while this is better than this past summer when we actually dipped below one month of inventory- this is still a very short supply of homes for all the buyers out there.
This means that if no new homes came on the market, with the current buyer demand, we would be completely out of homes to sell in just over a month.
If you’re a seller, this is great news- even with the colder temps and holidays approaching, you can still expect to get top dollar for your home.
If you’re a buyer, this market requires a unique and elevated skill set that only an expert, experienced agent can offer you.
If you have any more questions about buying or selling in this unique market, reach out to me!
I’d love to hear from you!