One of the most significant factors in spurring a seller’s market is low-interest rates.
The Federal Reserve has dropped the interest rates for the third time now in 2019. Low-interest rates accompanied by low inventory in the housing market is a perfect recipe for it to become a Seller’s market. Simply put, there are more buyers that there are homes to buy on the market.
Hi, This is Dixie with Haven Real Estate Group.
What are some signs of a seller’s market?
In a seller’s market, homes don’t stay listed for long. Many homes sell in just weeks, while others take days or even hours. Many sellers also find themselves with the enviable problem of mediating a “bidder’s war” with multiple offers coming to the table. Not surprisingly, some of the homes even sell for well over the listing price, as desperate buyers offer top dollar.
One of the drawbacks for Seller’s is they worry that if they are staying in the area, they may not be able to find a home to buy. If you need to buy a home as well as sell one, investigate the possibility of a leaseback, where you arrange to rent your former home from the new buyer for a month or so. Sometimes this works well for a buyer who felt pushed into making a quick purchase in such a hot market, but still needs a little time to relocate.
But what if you’re planning to buy a home?
If instead of selling, you want to buy a home, your first best step, again, is to find an excellent Realtor. A knowledgeable professional can help you find the right homes, at the right price, as soon as they hit the market, and write a competitive offer. You should also make sure to be pre-approved with your lender, so the seller will know right away that you’re capable of backing up the proposal you make.
If you can afford it, you can even include an escalation clause with your offer, specifying just how much you’re willing to come up with to top any competing offers. Even if, you are not made of money, it can help if you’re willing to be flexible with your move-in date. A seller may be willing to take your offer over another, higher one, if your timetable matches his better.
One thing you can count on is that a seller’s market will change to a buyer’s market, which we will discuss in another article. The market is always changing, up and down, up and down, but generally in an upward fashion. Market conditions are excellent right now and are one of the reasons I encourage my home seller clients to list now.
Take advantage of this market. Remember your home is an investment, but (and yes, there is a but) it is only an asset when paid off; until then, it is a liability. Your home is only worth what the market is willing to pay you. A seller’s market allows you to take advantage of the market trend and set yourself up financially in a better situation, whether you are upsizing, downsizing, moving out of the area, etc.
Don’t be one of those people who say if only I'd known or I should have. Do it. It is a seller’s market NOW!
Feel free to contact me directly for more information