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Why It’s Still a Sellers’ Market

Thursday, August 4, 2022   /   by Laura Larson

Why It’s Still a Sellers’ Market

You might be wondering what that means for your intentions to sell your home as reports of the real estate market slowing down from the high frenzy it experienced during the pandemic increases. If you're considering moving, you should be aware that the market is still far from typical.

Even if there are more houses for sale this year than last, the housing market is still undersupplied. And that indicates that the current market is still in favor of sellers. This is because the number of available properties for sale might indicate whether buyers or sellers are in control. Consider it like this:

- A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their houses.
- In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.
- A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
And for the past two years, we’ve been in a red-hot sellers’ market because inventory has been near record lows.

How Does This Affect You?
The housing center director at the American Enterprise Institute, Ed Pinto, provides the ideal explanation of the state of the market today: "The best overall conclusion is that we'll switch from a brisk sellers' market to a modest sellers' market."

Even though the market is slowing down, the situation is still favorable to you. You'll make a good deal selling your home today if you collaborate with an agent to set the price at the market level. Despite the fact that buyer demand is waning as a result of rising mortgage rates, properly priced properties are still selling quickly. That indicates that you have time to list your home.

Bottom Line
Today’s housing market still favors sellers. If you’re ready to sell your house, connect with Laura Larson now so you can start making planning your next move.