Is it a seller’s market or a buyer’s market? Who the market favors comes down to supply and demand.
A seller’s market occurs when demand exceeds supply; during times like this, a seller can often get over asking price for their home because of competition. A buyer’s market occurs when supply exceeds demand and buyers have their pick of properties.
Although the seller continues to prevail in today’s market, there are signs that there may be a shift underway. According to Inman, home inventory rose at a record pace - up almost 31 percent in July, compared to the same period a year ago. This wasn’t the result of new listings, but rather a slowdown in demand from buyers.
Although buyers are gaining leverage in the market with an increase in inventory, some factors still favor the seller.
“Overall, a well-priced home is still expected to sell very quickly in most markets due to the market’s present cocktail of seller-friendly conditions,” said Danielle Hale, Chief Economist at Realtor.com.
In speaking to Forbes, Hale reports that despite the rising inventory, there are still several factors that favor the seller. Listing prices are still near an all time high and homes are selling rapidly compared to pre-pandemic levels. Furthermore, home owners have established a significant amount of equity because of rising prices over the last several years.
Overall, buyers are still eager to find their next home. In the evolving market, it can be challenging for buyers to know exactly how competitive they need to be, and if they should still be prepared for bidding wars. For sellers, the top concern should be making sure they can differentiate their home from others sitting on the market.
How exactly can a seller differentiate their home? Many sellers turn to improving the home’s curb appeal, updating small fixtures throughout the property, and fresh coats of paint in every room. Now, there are new and emerging technologies that can also be leveraged to address barriers around what matters most in the home buying process: transparency.
Sellers who want to take advantage of this strategy now have the option to work with an agent to list the home on Final Offer. Final Offer helps buyers, sellers and agents engage in a more transparent offer and negotiation experience. In an evolving market, it’s the best way for sellers to achieve true market value. At the same time, it encourages buyers who have been sitting on the sidelines to make an offer they know the seller will accept.