Can Supply & Demand Impact My Buying/Selling Goals?
I think it’s safe to say there are more buyers on the market than there are homes listed for sale. We are currently seeing an influx of buyers, and listings are getting taken up by the flood of buyers within 24 hours. Many homes within our area have sold within 24 hours, and it’s becoming the new normal. Let’s discuss supply and demand, meaning there is a lower amount of homes available compared to the amount of buyers flooding the market. Based on the basic concept of supply and demand, this means home prices will naturally rise. So, knowing what’s happening with the inventory of homes for sale and the demand for housing is crucial when entering the market to buy or sell.
This is not something Tennesseans are only experiencing. Nationally, supply is extremely low compared to the demand for housing. Which, in result, has driven prices up to be nearly unaffordable to some. The National Association of REALTORs (NAR) indicated buyer traffic heavily outweighs seller traffic today, as shown in the map provided below:
As you can see, the map shows how the demand for homes is significantly higher than homes available to buy. Based on this graph, it can be intimidating to an individual looking to jump into the market. However, this may be the best time to buy and/or sell. Yes, there are many factors to count in here, but there are also many benefits to both ends of the spectrum.
As a buyer, this map is likely discouraging you from purchasing the home of your dreams, but it may be a better time than you had originally thought. As of now, we are experiencing an “uncertain” time dealing with Russia and Ukraine. Dealing with this uncertainty, we are seeing a slight decrease in interest rates. If you are interested in learning more information on this topic, visit the last blog we posted.
Yes, you are likely to see more competition in the market, so you would need to be strategic to win. First and foremost, you will need to have a trusted real estate professional help you with understanding the local market and work with you to act quickly when the time is right! When in the market to purchase a new home, you can still succeed in this market by having a trusted advisor on your side throughout each step of the buying process.
As a seller, this market presents you with an advantage. Supply is struggling to keep pace with the current demand for housing. Home supply has recently hit an all time low, but what does that mean for you as a seller? With listings being at an all time low, your home will likely have more interest, especially if you work with a professional who will price it accordingly. With how many buyers flooding the market, the chance of you receiving multiple offers is high, and that means more money in your pocket! The current dynamic of our market can work to your benefit, which can drive the sale of your home up.
Whether you are a homebuyer, seller, or both, knowledge is truly power. Let us guide you through the market to achieve your buying/selling goals; give us a call today!