HOUSING MARKET UPDATE: BUYER'S OR SELLER'S MARKET?
Pinky Shah
Mortgage Strategist Licensed in 48 States | Homebuyers Advocate | Positivity | NMLS 254596
WILL IT BECOME A BUYER'S MARKET ANYTIME SOON?
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1 BUYER'S MARKET vs. SELLER'S MARKET
Housing inventory measures how many months it would take to sell all the houses currently listed for sale, at the current pace of home sales. For example, if there are 300 homes currently listed for sale, and an average of 100 homes are selling each month, there would be a three-month housing supply. This is because it would take three months to sell all the homes currently listed for sale. A buyer’s market is generally anything more than 6 months. If the inventory numbers are higher than 6 months, buyers generally have more negotiating power than sellers. In that case, home prices may?move lower, and sellers will most likely accept an offer for less than the listing price. A seller’s market is generally anything less than 6 months. If the inventory numbers are less than 6 months, sellers generally have more negotiating power than buyers. In that case, home prices may?move higher, and buyers may be competing with multiple offers on the house they want.
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2. WILL IT BECOME A BUYER'S MARKET ANYTIME SOON?
Not likely on a national level, but it depends on your local neighborhood. Inventory levels are currently 3.0 months across the country, according to the National Association of Realtors. This is up slightly from 2.9 months of inventory at this time last year. This means that if you're a seller, you may have to be more competitive with the way you price your home and potentially offer some concessions like paying for the buyer's closing costs. If you're a buyer, you may have slightly more inventory to choose from but don't expect prices to tumble anytime soon. In fact, it may take a few years for the housing supply to increase enough to meet demand. See my articles about housing supply and demand for more details about the demographic trends that are driving current market conditions. Contact me for more info or to evaluate your options!
NUMBER OF THE WEEK - 3.0 MONTHS
THAT'S HOW?MUCH HOUSING INVENTORY WE HAVE IN THE US, MEANING IT'S STILL GENERALLY A?SELLER'S MARKET.