Real Estate Trend – 5 Reasons why we are in a sellers’ market
A sellers’ market is when there are more buyers in a market looking to invest in property but there are not enough available properties to meet the high demand. The year 2018 seems to be a seller’s year, and here are the reasons it is so and why you should put up your home for sale:
Home Prices Have Been On The Rise
That is right, way back from 2017, and on wards to 2018, home prices have been on the rise. Although it is advisable that you sell as soon as you can, you will also fetch a good price if you sell later in 2018. Trusted databases show that there has been a 5.5 percent increase in home prices over one year.
There Are Fewer Listings
It is really about the law of supply and demand. When there are few properties in the listings and there are many buyers looking for the same, then that is considered to be a seller’s market. If you are looking for a property, this would be a good time to hold back some and wait it out a bit. If you have a home you would wish to sell, take advantage of this opportunity and sell.
The properties available for sale are quite few and this can only mean that the supply of property is low. When there are a few properties in the market for sale compared to the usual listing on the market, then that can be listed as a sellers’ market. With a seller’s market, there is great demand for property but there are quite few listed for buyers to buy.
Bidding Wars Going On
Look around you, and you will see that in most places, there is a shortage of properties listed in the market. Silently, slowly but surely; there is a current ongoing bidding war. This is a sure indication that we are definitely in a sellers’ market since multiple buyers are making biddings for the same property that is available in the market.
It is safe to assume that since buyers are clawing each other out of the way for the same properties because there is a shortage.
One question that you may wish to ask is why there are these bidding wars. There are many reasons but chief among them could be the low interest rates, people having more money as the economy takes more form and so on. You may also want to consider the fact that many millennial have come of age now and they are looking to buy homes. By all these indications, you can see that 2018 is a seller’s market.
Expensive Property Due To Higher Demand
The sellers currently selling their homes now are doing so at extremely exorbitant prices and this can only mean that we are in a seller’s market. If you are looking at property listings and you note that most of the property on sale is at high prices, then it can only mean that there are more buyers than property in the market.
Most properties are going for double or triple the price they would have otherwise been sold for in a normal market and the trend seems headed upwards in favor of the buyer. Based on the prices of houses in the market, we are definitely having a seller’s market and the trend can only go upward from here.
The negotiating ability of buyers looking for homes is now quite low since there is fierce competition in the market. With buyers doing their best to outbid each other, properties are indeed fetching great prices. This is your market if you are selling and you can stick by the price that you have decided on. However, note that it does not always remain a seller’s market. The tide could shift, so it is better to take advantage as soon as you can.
There are more renting trends as compared to buying trends in the current market and this can only mean that buyers are saving up on down payment for which they can pay to own a home.
Since there is little movement with buying and more renting trends, it is safe to assume that that it is a sellers’ market. With most buyers not being able to compete with others in the market, the trend can only point to the fact that we are in a sellers’ market.
Understanding the high demand of property allows you to be smart in selling your property for good price. Sometimes, some sellers still sell their property in surprisingly low price. So, if you are looking to buy affordable condos, you should always look out for the best opportunities available. If you are from Santa Monica California, check this listings of Santa Monica real estate for sale. Santa Monica is a popular place to live in and you might be interested to buy even a small condo. You can check these condos for sale in Santa Monica and make a buying decision if you get an affordable price even in this sellers’ market. You never know!