Have you thought about selling your house this year? Well, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. The concept of supply and demand is simple: the best time to sell something is when supply of that item is low and demand for that item is high. In these conditions, scarcity of a product drives the value up as buyers compete for a product with decreasing availability. This concept defines today’s real estate market.
Jonathan Smoke, the chief economist of realtor.com, in a recent article revealed:
“Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad.”
In a market where 90% of buyers use the internet for the search and buying process, this kind of data is very meaningful making a 35% increases in search traffic for a website specializing in the real estate market a sign of something more than simple internet attention.
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies. After all, when demand greatly outnumbers supply, prospective buyers may be prompted to pay premiums for their desired house when competing with other potential buyers.
Smoke adds, “Perhaps that’s why we’re seeing a furious increase in single-family, condo, co-op, and townhome listing views. The average listing in April had 40% more views than in April 2014.”
If you’re a potential seller, you are in the driver’s seat right now. What you choose to do with this control can take you far, but only if you’re willing to make the move.