Since the start of last year, homes for sale have been on the decline, while housing prices have continued to rise.
The combination of stay-in-place orders brought on by the pandemic and the rise of low mortgage rates in efforts to encourage homebuyers has only widened the gap between supply and demand.
Because of this, we find ourselves in a constant state of a seller’s market.
What is a Seller’s Market?
A seller’s market is when the number of buyers exceeds the number of homes available to purchase.
What Does This Mean for Buyers?
With homeowners choosing to stay in their homes for longer and mortgage rates becoming more affordable for a larger number of borrowers, appreciation of homes has only continued to increase.
This means that buyers must stand out while remaining diligent in their search, and buyers who are just entering the market should be prepared to bid over asking and waive certain contingencies if they hope to purchase a home soon.
What Does This Mean for Sellers?
Sellers, on the other hand, have the luxury of being picky. With the value of their home most likely continuing to increase, they can take their time when deciding on who they want to sell to and can expect a bid over asking.
For more on this, check out our post of Tips for Buyers in a Seller’s Market.