Three Ways Low Inventory is a Win for Sellers
The number of houses for sale today is markedly lower than the high buyer activity in the current housing market. According to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):
“There is no shortage of hopeful, potential buyers, but inventory is historically low.”
When the demand for homes is higher than what’s for sale, it’s a beneficial time for homeowners to sell! Here are three ways low inventory can help produce a win if you’re ready to make a move this fall.
1. Higher Prices
With buyers outweighing sellers in the market, homebuyers are often entering into bidding wars for the houses they want to purchase. This buyer demand & competition drives home prices up. As a seller, this can definitely work in your favor, potentially netting you more for your house when you close the deal.
2. Greater Return on Your Investment
Rising prices mean homes are also gaining value, which motivates an increase in the equity you have in your home. In the latest Homeowner Equity Insights Report, CoreLogic explains:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity.”
This year-over-year growth in equity gives you opportunities to put that money toward a down payment on your next home or to use it in a savings capacity.
3. Better Terms
When we’re in a sellers' market like we are currently, you have more negotiating power if you sell your house. You have the advantage of selling on your terms, and buyers are more likely to work with you if it means they can ultimately move into the home of their dreams.
So, is low housing inventory a big deal?
Yes, especially if you want to sell your house at the most opportune time. Today’s market gives sellers immense negotiating power. However, it won't be like this forever, especially as more sellers return to the housing market next year. If you’ve been thinking of selling your house, the best time to do so is now.