Most people have heard of the term “seller’s market” when talking about real estate. But what does that term really mean? Many factors such as employment rate, investment growth, legislation, interest rates, and construction all influence the real estate market.
In a seller’s market, the real estate market is in the seller’s favor. Generally, there is a large pool of buyers and fewer homes for sale that satisfy the number of buyers. Typically, this type of market allows sellers to raise the prices of their homes due to supply and demand.
What it means to Homeowners in a “Seller’s Market”
As mentioned, being a “seller’s market” does not mean that there is an abundance of sellers. Many homeowners are still hesitant to commit to selling their home with the uncertainty of the market. But with the current environment and demand outstripping supply, homeowners are now pressured to act fast. The reluctance usually stems from the concern that they won’t find exactly what they are looking for in their next home. (This is what brings me to our next point.)
Information for Buyers in a Seller’s Market
The common belief is that you will be buying high and selling low in this type of market. That’s not necessarily true. The market constantly has ebbs and flows, so just because you are buying in a market where home prices are trending high, that does not necessarily mean that you will sell your home years down the road for low. Thankfully, there will always be people looking to buy homes in Florida as it is a highly transient state that is only growing in population.
Your best bet as a seller (current or potential) and a buyer is to keep tabs on the market. Like we mentioned, Florida’s market is pretty unpredictable, and there are always dream homes waiting for you on the horizon.
Talk to Heidi Joy so you are ready to pounce on the next opportunity that comes your way.