What is a Seller’s Market?

For Sale sign in the foreground with house in backgroundA seller’s market is when the demand for houses is greater than what is available. It usually results in multiple people being interested in one home and can often lead to a bidding war. When a bidding war occurs, the seller tends to get more than asking price for their home. Even though sellers can make a lot off of their home in a seller’s market, they have to be careful because they may end up spending more for a new home after they’ve sold their own. Generally, when the seller sells their home, they will rent for a while until the home prices go down. Be sure to do your research and figure out if selling your home will save you money.

What Causes a Seller’s Market?

The main cause for a seller’s market is a drop in interest rates for mortgages. This allows more people to be able to buy homes since they won’t be paying as much monthly with a high-interest rate. Another factor is more employment opportunities. Fresno’s unemployment rate is at 8.2%, down 11.6% since 2010.

Signs of a Seller’s Market

  • Homes don’t stay on the market for long
  • Mulitple offers coming in
  • People flipping houses to make a profit
  • Foreclosure rates decrease