Understanding what is at stake
If you are like many in our community, you may have been hearing and receiving a lot of mail using the term “seller’s market” a lot lately. What does that term actually mean? The housing market, like most markets, is cyclical. These cycles can be influenced by a number of factors (such as interest rates or economic conditions) and often dictate whether there’s a shortage or surplus in housing. There are 3 different types of markets:
Seller’s Market
• There are more buyers than homes for sale
• Home prices tend to be higher because of increased buyer demand
• Homes sell quickly
• It’s more likely to have multiple offers on a home
Buyer’s Market
• There are more homes on the market than buyers
• Home prices tend to be lower because of increased supply
• A housing surplus can lead to a slow rise in prices or even lead to price reductions
• Home buyers have more choices and leverage to negotiate
Balanced Market
• Occurs when supply and demand are about the same
With inventory levels extremely low in the United States, the market is currently favorable for sellers. If you’re considering selling, now is a great time! Contact America’s Moneyline today and we would be happy to discuss the budget for your next home purchase. Be one step ahead of the market by having a strong pre-approval letter.
