Friday, December 20, 2019 / by Jo Skipper
What is a Seller’s Market?
If you are looking to purchase a home in the Spokane or Coeur d’Alene area right now you may be realizing that this is a strong seller’s market. You have probably read this in an article somewhere or heard this on the news. However, what does this even mean? Simply put, this means there are more active buyers in the market than there are homes for sale.
This results in a lack of inventory in available homes. Which then results in higher-priced homes in this area. We are faced with strong competition in this area right now. Homes sell rather quickly and multiple offer situations are common in this type of market. Many people wonder why this is the case. Let’s discuss how a seller’s market comes to exist.
There are a number of factors that will result in a seller’s market. The first is population growth. This can have a number of reasons and many come with different opinions. Whatever the reason, this area is experiencing a large growth in population.
Another reason for a seller’s market is job market growth. This will not only increase the population but also make it possible for current residents to enter the real estate market. In turn, many people can then sell their homes and purchase a larger home thus furthering the cycle.
A long term effect of the market crash in 2008 is the number of housing starts. The number of construction companies that build single-family homes decreased dramatically during and after the market crash. This number has not recovered in the decade to keep pace with housing demand. This has resulted in a smaller number of homes being built and made available for the growing population.
The best thing you can do in a seller’s market as a buyer or a seller is to be prepared. There are a number of factors that present themselves in this market that make navigating the sales process that much more complicated. Work alongside your agent to make this as smooth of a transaction as possible and to align your expectations in this competitive market.