A seller’s market refers to a real estate market where the buying and selling rate is healthy and the home values are high. In other words, this is a market that benefits the seller and can sometimes be difficult for a new buyer to get into. These markets can be intimidating but it is possibly to make it work for you.
What causes it?
A strong economy means job growth, good pay and industry booms. These booms often lead to population growth and therefore an increase housing construction. Although there are often many homes available for purchase in a seller’s market, the prices are usually significantly higher than what you may expect. People are pretty good at looking at real estate and estimating a basic value based on the home and property alone. However, once you factor in the strength of the economy and a properties location the value of it may skyrocket.
How to benefit?
The best way to benefit from a seller’s market is to be a seller. If you have a property you want unload, now’s the time. If you were lucky enough to purchase your home during a buyer’s market, or have owned it for years (long enough that you purchased it in a vastly different economy) then now is the time to sell. Selling in a seller’s market is the best way to turn over a great profit on your home. Even if you buy in a seller’s market, your property will tend to continue increasing in value for as long as the economy remains healthy – this means you could buy and sell in a year or two and still make a profit.