What’s a Seller’s Real Estate Market?

seller's real estate market

Seller’s Real Estate Market

The flip side of a buyer’s market, is the seller’s real estate market. This is the market that makes homeowners sit up and take notice of how quickly homes are selling in their neighborhood. The kind of market that makes them wonder if now is the right time to make a move.

But what IS a seller’s real estate market?

A seller’s market exists when the inventory of homes for sale today would all sell in less than 6 months. For example, if there are 10 houses for sale in your neighborhood, and they sell on an average of 2 per month, all of the inventory would be sold in 5 months. Of course, this assumes that no new homes come on the market, but you get the idea. Whenever the math comes in under 6 months, it’s a seller’s market.

Who has the advantage in a seller’s market?

Definitely the seller. It’s all about supply and demand and when there is a limited supply and a high buyer demand, sellers are the winners every time. They know that if the first offer doesn’t work out, there will be another one right behind it. This means buyers don’t have as much leverage when negotiating on price, terms or condition. It’s a good place to be if you’re a homeowner in a popular area, not so great if you’re a buyer trying to get into the neighborhood of your choice.

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