Helping you buy and sell real estate in Boulder County and beyond
As there’s more and more talk about the real estate market cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans to sell your house. If you’re thinking of making a move, you should know the market is still anything but normal.
Even though the supply of homes for sale
has been growing this year, there’s still a shortage of homes on the
market. And that means conditions continue to favor sellers today.
That’s because the level of inventory of homes for sale can help determine if buyers or sellers are in the driver’s seat. Think of it like this:
A buyers’ market is when there are more homes for
sale than buyers looking to buy. When that happens, buyers have the
negotiation power because sellers are more willing to compromise so they
can sell their house.
In a sellers’ market, it’s just the opposite. There
are too few homes available for the number of buyers in the market and
that gives the seller all the leverage. In that situation, buyers will
do what they can to compete for the limited number of homes for sale.
A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
And for the past two years, we’ve been in a red-hot sellers’ market
because inventory has been near record lows. The blue section of this
graph highlights just how far below a neutral market inventory still is today.
What Does This Mean for You?
Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, saying:
“Overall, the best summary is that we’ll move from a gangbuster sellers’ market to a modest sellers’ market.”
Conditions are still in your favor even though the market is cooling.
If you work with an agent to price your house at market value, you’ll
find success when you sell your house today. While buyer demand is softening due to higher mortgage rates, homes that are priced right are still selling fast. That means your window of opportunity to list your house hasn’t closed.
Today’s housing market still favors sellers. If you’re ready to sell
your house, let’s connect so you can start making your moves.