Why Sell your House Now

InventoryA seller’s ability to sell their home in today’s real estate market is governed by the supply of homes for sale and the demand for homes. In real estate, supply is represented by the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).

Although no dedicated rule that will apply to pricing in every housing classification, here’s a general rule

§1-4 months’ supply is a sellers’ market where not enough homes to satisfy buyer demand is evident. Appreciation is usually guaranteed.

§5-6 months’ supply typically creates a balanced market. Historically home values appreciate a little greater than inflation.

§7-8 months’ supply usually creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation typically follows.

In most parts of the country, supply is very low.

 

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