6 Ways to be Home with Jagoe in a Seller’s Market – 2018 Housing Market Trends
What is a seller’s market? Simply put, it’s a market where there are more home buyers than sellers. Based on basic laws of supply and demand, this means that sellers have the upper hand. You will likely sell your used home quickly, perhaps even for over asking price, with minimum argument or push-back from the buyer. Here’s what buyers need to know about a seller’s market and how to survive them.
- Home prices are rising in U.S. cities, and inventory is tight, meaning that there just aren’t enough homes to go around. When you think about it, even though the number of homes being built has increased over the past ten years, it has not kept up with the population growth.
- Where are the hottest seller’s markets? The main metric used when evaluating housing markets is home price appreciation. With the greater imbalance of supply and demand, the price appreciation will get faster. Generally, when there’s an increase in the number of people moving to a town, demand for housing begins to exceed supply. Just as well, an influx of new companies and jobs can fuel population growth that turns areas into seller’s markets.
- The term “Housing Starts” refers to the number of new homes on which builders have started construction in any particular month. Because new construction directly affects supply, a decrease in housing starts can result in a seller’s market. See what the new construction trends are in Owensboro, Bowling Green, Louisville and Evansville.
- Are you in a true seller’s market? Home buyers and sellers can evaluate whether they’re in a buys or sellers market by a few variables.
- Average days on market (DOM): This measurment shows the median age of real estate listings in your area. If homes are selling in your neighborhood in about ten days, then it’s a strong seller’s market. You can find what the average DOM is in your city using this Local Market Trends tool.
- The asking price vs. the final home price: In seller’s markets, bidding wars can often irrupt among buyers, which means sellers may enjoy a final sales price that’s equal to their asking price. So, if a home is listed at $450,000 and sells for $450,000, $460,000, or higher, that’s a seller’s market. In a strong seller’s market, the final sales price is typically at least 10% higher than the asking price.
- Home prices over time: Rising home prices over time is a sure sign of a seller’s market.
- Buying a home in a seller’s market means that you need to be competitive. Make sure to get a mortgage pre-approval letter before you start shopping so that a seller knows that you are serious. You may also have to waive some contingencies to edge out other buyers.
6 Ways to Be Home with Jagoe
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