Low inventory is a great thing for home sellers. Here are three reasons why.
As a seller in today’s market, low inventory levels can actually work to your advantage. Three key reasons explain why that is:
1. Higher prices. Since there are many more homebuyers in the market than available homes to purchase, buyers are often entering bidding wars to purchase the home of their dreams. This works to your advantage by helping you net the highest price when you close the deal.
2. Greater return on investment. In our low inventory environment, prices have been increasing. This increase relates to having more equity in your home this year. In fact, in the second quarter of 2020, the average home equity level rose by $9,800. This increase also allows you to either put more money down on your next home or pocket the savings.
3. Better terms. When you list your home in a seller’s market like ours, you’re in the driver’s seat. That means you’re more likely to get the terms and pricing you want, and buyers are willing to accept that and work with you if it means they can finally move into their dream home.
The bottom line is that low inventory is a big deal, and in today’s market, sellers have immense negotiating power—but that won’t last forever.
If you have questions about how to take advantage of today’s seller’s market or anything related to your specific circumstances, please feel free to reach out to me. I’d love to speak with you.
Here are the three reasons why this fall may be a seller’s paradise.
If you’re thinking of selling your home, there are three reasons why this fall is the ideal time to do so:
1. Buyers are actively in the market. According to ShowingTime, showings have jumped nearly 61% compared to this time last year. It’s clear that buyers are ready, willing, and able to buy a home, and they’re in the market right now. It’s a great time to take advantage of this heightened activity and sell for the most favorable terms.
2. There aren’t enough homes to sell. According to the latest report from the Sacramento Association of Realtors, there are just over 1,200 single-family homes available on the market—almost 50% below where our supply was at this time last year. There simply aren’t enough homes to satisfy buyer demand.
3. The transaction process is moving quickly. In today’s ultra-competitive environment, buyers are doing everything they can to stand out among the crowd, including getting pre-approved, removing contingencies, and promising a quick close. This makes the sale process much quicker and more straightforward. In this competitive market, the average time you’d need to close on your home is just 21 days.
The bottom line is that the housing market is primed for sellers. It’s never too early for us to get together and discuss your next step, so if you’re ready to get started or have any real estate questions at all, don’t hesitate to call or email me. I’d love to speak with you.
Here is the latest news about our local market.
By now, you probably won’t be surprised to hear that our Sacramento real estate market is really hot; interest rates below 3% and a housing stock with less than a month’s worth of inventory have been powerful fuel. Those two factors combined have created an environment in which multiple offers are commonplace and homes sell above asking price.
With regard to prices, the Sacramento housing market has seen an increase of more than 7% year to date. When you look month over month compared to last year, it’s a 10% increase, which is substantial given everything that’s happened this year.
That said, it’s not all rainbows and unicorns. There are certainly real challenges in our market, as I’m sure plenty of homebuyers would be quick to point out; with so many buyers active in the market and so few homes available for purchase, a home search can feel daunting.
Furthermore, the condo and townhome markets have taken a hit since 2020 buyers who were forced to take a closer look at their current living arrangements during lockdown—are hunting for more interior space and larger yards. Rental properties, particularly those in instances where the buyer wants to occupy the home, are also experiencing some challenges.
However, none of these challenges are by any means insurmountable, they just require much more patience. The bottom line is that the market is moving quite quickly and home appreciation is up thanks to low rates and low inventory. Nothing is perfect, and some circumstances will demand extra care, but that’s why working with a professional has never been more important than it is today.
I hope you found this update helpful. If you have further questions about the market or want more information on a specific real estate topic, don’t hesitate to give me a call. I look forward to hearing from you, and I’ll see you on my next blog!