Word on the street is that we are in something called a “seller’s market.” What is a seller’s market?
Pure and simple, when demand exceeds supply and there are many interested buyers but inventory of homes for sale are low, this is a seller’s market. In this type of market homes will sell faster, have multiple offers way over asking price where prospective buyers must compete or “battle it out” in order to buy a home.
Since I am a visual learner and maybe you are too, let’s paint a picture of what a seller’s market looks like and how we got here.
It is March 2020, we are just learning about COVID-19 and how it is going to affect our lives. Little did we know that a year later, March 2021, we would still be navigating the new normal. Many families are adjusting to working from home and online learning. We are spending full days at home and have come to the realization that our home does not fit our present needs.
While some homeowners are looking at making improvements to the home they own, other homeowners are contemplating selling their present home. As long as there is a strong WIFI connection, the reality is that people can work from home and students can learn in a virtual online environment.
So, what possibly caused the inventory of homes to be so low? Buyers who could not purchase a home in previous markets were taking advantage of historic low interest rates. Homeowners who sold homes in San Francisco and the Bay Area were taking advantage of selling their homes at very high prices and walking away with a large amount of proceeds to put down on their next home. Renters also found an opportunity to be able to purchase homes outside of high rental areas, whereby their mortgage payment was less than the rent they were paying.
Another factor that attributed to the housing shortage relates to how the pandemic affected the work force. The hardest hit industries were those folks making less than $100,000 a year. High paid executives and employees discovered they did not have to work onsite and had great flexibility to live and work in a more affordable location.
Regarding the present market, I reached out to Pete Diryawush, Broker~Owner of J.Peter Realtors and the President of the Central Valley Association of Realtors who shared, “If you’re thinking of selling, this IS the time to do it. I can only tell you what’s happening in today’s market, and today the sellers hold all the cards. Tomorrow is always an unknown in any aspect, especially so in Real Estate. “
Bottom Line – Sellers need to evaluate closely the pros and cons of selling in this market. The positive of course is making an amazing amount of money from the sale of the home. The negative is unless you are moving out of state you could find yourself without a home to go to.
As always it is best to consult with a realtor, an accountant, a financial advisor and possibly an attorney to help you make the best decision that is right for your family.
• Donna A. Baker, CRS ABR SFR CDPE is the Broker-Owner of At Home Real Estate Group selling real estate for 21 years. Her memberships include National Association of Realtors, California Association of Realtors, Certified Residential Specialists, Central Valley Association of Realtors, Accredited Buyer's Representative, Certified Distressed Property Expert®, and Short Sales and Foreclosure Resource. In addition, Donna teaches monthly at the Central Valley Association of Realtors New Realtor Member Orientation and serves as the Chairman for the Tracy Real Estate Marketing Council and as a Board member for the McHenry House a local rehab shelter.
Donna has lived in Tracy since 1989 with her patient husband Tom of 32 years and has two awesome children, Trevor and Ally. Contact her at email@example.com.