Properties for sale have dropped to record levels in the past few months indicating a big change in the real estate market. As the number of available properties shrinks the impact of interest that quality properties receive increases exponentially, which can be an advantage or a disadvantage depending on which side of the transaction you are on. It is simple supply versus demand and with demand going up, because of greater consumer confidence, whereas supply is not increasing at the same pace resulting in a subtle shift towards a seller’s market. We have been in a buyer’s market since 2007, but most buyers were so affected by economic uncertainty that the majority of people were holding off on purchasing.
I have listed the benefits and drawbacks considering today’s market conditions:
Sellers:
- Homes are selling at a faster pace
- The difference between the listed price and the actual sale price is becoming smaller
- Prices are seeing a gentle push higher
- No one knows how much prices will go up, nor how fast so it’s a gamble to know when to sell
Buyers:
- There is less inventory now than there’s been in the past 5 years
- “Deals” found 1-3 years ago are harder than ever to find
- Buyers need to make offers faster if they find a property they are seriously considering, because the good stuff goes fast
- Buyers can be more confident that home values are appreciating, so buying soon means that they can see gains in equity in the near future
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