What is a Seller's Market?
In February of 2021, there were 46.8% fewer homes on the market in Colorado compared to the same time last year. And across the country, there’s currently just a 2-month supply of homes for sale to meet the current pace—a 6-month supply is considered normal. (Source)
This lack of home supply to meet the demand of buyers has created a seller’s market.
If you’ve thought about selling at some point soon or down the road, make that point now. With so few homes on the market, yours will likely get even more attention, more potential buyers through the door, and perhaps, more offers on the table.
And if there's a bidding war over your home, you’ll be able to choose the most attractive offer and enjoy greater negotiating power. You might even have a smoother closing as buyers are willing to overlook minor issues to ensure the deal doesn't fall through.
Just talk to your PorchLight real estate agent about your best strategy to maximize the return on investment in your home.
Why Buy in a Seller's Market?
With the right real estate agent, loan pre-approval, and the ability to act quickly, you can still buy a fantastic home in a seller’s market. Plus, there are a couple of potential upsides for you to consider.
MORTGAGE RATES ARE LOW
Currently averaging around 3%, mortgage rates are still incredibly low, and it’s unlikely that they’ll creep back up to the crazy highs of the past (back in 1981, they were 16.63%). That means you’ll get more home for your money while building your real estate wealth faster.
YOU CAN EARN EQUITY NOW
If you brave the current market, you’ll ultimately pay less and start earning thousands in equity now. Currently, some analysts predict mortgage rates will be 3.77% (Source) by early 2022 and homes will appreciate by 5.9%. With these numbers and 10% down, here are your calculations:
Next Steps for Buying or Selling
If you’re considering selling, talk to a PorchLight agent about providing a free Comparative Market Analysis (CMA) report. The figure our agents provide isn’t based on a generic algorithm like you might find on some of the big home search sites which are notorious for inflated numbers.
A truly professional CMA looks at comparable homes (comps) that have recently sold, current market conditions, along with your home’s location, age, condition, size and other factors such as upgrades you've made since living there. If you want a clear picture of your value and equity, a proper CMA is your jumping-off point.
Thinking about buying? We've established the perfect partnership to give you an advantage in today's market—Homeward. This company offers financial programs that enable homebuyers to make cash offers, even before they sell their current home, or if they are buying without selling at all. Cash offers are three times more likely to win bids, so reach out and let us get you qualified!