Why is it a seller’s market right now?
There are not enough homes available to meet today’s buyer demand in the real estate market. That means it is an ideal time for those who are ready to sell because there are likely buyers out there right now who would love to buy your house today.
To put the real estate market in perspective, check out this graph which shows the number of active listing on the market for the last seven Februarys.
Active Monthly Listing Counts Over the Last Seven Februarys
- 2017 – 1.15 Million Active Listings
- 2018 – 1.04 Million Active Listings
- 2019 – 1.10 Million Active Listings
- 2020 – 927 Thousand Active Listings
- 2021 – 463 Thousand Active Listings
- 2022 – 344 Thousand Active Listings
- 2023 – 578 Thousand Active Listings
As you can see, even though there are more available homes in February 2023 than in February 2021 and 2022, there are still far fewer listings than we saw in a normal pre-pandemic year.
That is creating a sweet spot for sellers right now. Housing inventory is low, which means that you have the advantage of a seller’s market. However, the housing inventory is also increasing, which means that you will have more options when you are home shopping and move.
As the pace at which buyer demand outpaces the housing supply continues to shrink, the need for buyers to enter into bidding wars and waive contingencies for things like appraisals and inspections also decreases.
Moving Toward a Balanced Market
According to BankRate, the guideline for a balanced real estate market, or one that neither favors sellers or buyers, is defined by a five to six month supply of homes. While we are still in a seller’s market, the balance between the housing inventory and buyer demand is progressing.
If you are thinking about selling, then this can be your chance. Connect with us at the Barrington Group Real Estate so that you can make the most out of this market.
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Sources: Realtor.com | BankRate
