Whether you’re buying or selling a house, it’s vital to understand the supply and demand of the housing market to determine your best strategy. Our helpful explainer breaks down how supply and demand impact your buying and selling goals and how the current market affects buyers and sellers.
The Current Supply and Demand of America’s Housing Market
Supply and demand are crucial factors in whether the country’s housing market is considered a buyer’s or seller’s market. What’s America’s housing market as it currently stands?
The housing market is ideal for sellers as of this writing and in the past couple of years. Currently, there is a low supply of houses but a strong demand, with buyer activity exceeding seller activity almost universally across the country.
The inventory for nationwide homes hit an all-time low recently, so there are a lot of Americans looking to buy from a small pool of homes, whether you’re looking at 30A Florida real estate or homes in Boise, Idaho.
What a Seller’s Market Means If You’re a Seller
We know it’s a seller’s market, so what does that mean if you’re a seller? Obviously, it’s good news because practically anything on the market will fetch a higher price than it would in a more balanced market.
It also means that you’re likely to sell quickly, as there aren’t many options for homebuyers and they’ll be looking to snatch up every available property. A seller’s market means more potential buyers viewing your property, more potential bids, and a possible bidding war.
All these circumstances add up to you receiving an impressive bid on your home in a short amount of time.
What a Seller’s Market Means If You’re a Buyer
What if you’re a buyer in a seller’s market? It’s not ideal, but there’s still an opportunity to make a sensible and lucrative investment.
In a seller’s market, a buyer will have more competition regardless of the property. This is where having an agent working and scouting on your behalf is beneficial because speed is much more critical in a seller’s market. You’ll want to make a firm offer fast before other bids emerge and turn into a bidding war.
Even in a market where prices are high, there’s still ample opportunity to find a home at a reasonable price with potential for appreciation. You may have to invest in a smaller or older home and renovate it yourself to get the home of your dreams, but there’s always plenty of opportunity in the housing market.
It’s a fascinating time for America’s housing market. Experience and resources are more crucial than ever, and a knowledgeable agent can help you navigate how supply and demand impact your buying and selling goals. If you need a reliable and helpful broker for Florida real estate, look no further than 30A Local Properties!