Here’s how our blazing-hot seller’s market is beginning to change.
Some of my seller clients have been wondering whether they should hold off on listing their homes. They still want to maximize value, but if they can still afford to wait, they will.
Though nobody has a crystal ball, we do know that things will likely be changing in the market soon. Additionally, these changes will make it more difficult to secure top dollar on a home sale. Here are three things you should be aware of:
1. Buyer fatigue: Buyers have been out there for months now, putting in offers and losing over and over again. There’s so much competition that it’s difficult to beat out all the other buyers, and it can easily lead to fatigue. Buyers are already starting to take a break from the market and wait until more inventory arrives. When the buyer pool decreases, there is less competition for your listing, and this leads to a lower price on your home.
2. Increase in inventory: Inventory is going to begin rising slightly for a few reasons. People who were worried about the pandemic, such as seniors and immunocompromised individuals, will begin easing into the market as vaccinations continue. More listings will appear as sellers become more comfortable, so inventory will rise and competition will calm down a bit.
3. Inflation: Inflation will occur due to government spending and relief packages, which will affect the prices of goods as well as mortgage rates. People lose buying power when mortgage rates rise, and some buyers will be pushed out of certain price points. This means the buyer pool will diminish and lead to less competition.
These things will begin happening over the next few months—some are even happening now. As they occur, inventory will rise and prices will flatten out or even decrease slightly. For these reasons, now is the best time for sellers to jump into the market. If you’re ready to list your home or you have any questions, feel free to reach out to me. I look forward to hearing from you soon.
