Is right now a seller's market and what does that mean?
If you have been thinking about selling your home, you most likely have been doing some research about the real estate market right now - and you’ve probably seen the term “Seller’s Market” used quite a bit to describe the market currently. But, what does that mean? Why is it important to acknowledge this when thinking about selling your home? Keep reading to find out.
What exactly is a seller’s market?
A seller's market is a market condition characterized by a shortage of goods available for sale, resulting in pricing power for the seller. A seller's market is a term commonly applied to the property market when low supply meets high demand.To put it simply, a seller’s market means that the real estate market is currently working in favor of the seller.
Why is this important?
A seller’s market is the ideal condition to sell in because it means a much easier and favorable real estate transaction (and overall experience) for you. It often means more showings, more offers (many of which are over asking price), a higher price, less time on the market, and less competition. Low inventory and high demand means that buyers are more competitive than ever, and are looking at your home more so than before.
What does the current seller’s market look like?
Currently, the market is more favorable to sellers than ever before! Due to record-low mortgage rates, homes are more affordable to a larger multitude of buyers - and with many people’s lifestyles and needs changing in the past year, it seems like EVERYONE is looking to make a move! In Minnesota specifically, there has been a huge increase in demand as interest for the outdoors and an “escape” has become prominent. There has never been a better time to sell your home - if you don’t believe us, check out these statistics below from the National Association of Realtors.
Days on the market
Compared to last year, homes are selling in half the time. The January 2020 average days on the market was 43 days, whereas today, the average is 21 days. This means it is likely that you will have a much faster overall transaction!
Bidding Wars
Homes are now getting more offers, meaning bidding wars are much more common. The average in January of 2020 was 2.3 offers - but it has risen to 3.7 offers in 2021. This likely means you not only will receive more offers, but these offers will be higher quality and could potentially be over asking price or exclude certain contingencies to make for an easier sale.
Sales Price
Nationally, the average sales price has increased by 14.1%. In January of 2020, the national average was $266,300. Now in 2021, it is $303,900. That means your home’s market value will likely be more than you think, and could earn you more than you expected.
Over the past year, potential sellers have gained an unprecedented opportunity to sell with amazing success. As spring arrives more homes will begin to come onto the market, and these numbers will change. Act now and ensure that your home stands out and receives the best possible results! If you are interested in selling, reach out to us! We are working with many serious, qualified buyers that could result in selling your home before it even hits the market.