What is a Seller’s Market?
A 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.
- Homes don’t stay on the market for long
- Mulitple offers coming in
- People flipping houses to make a profit
- Foreclosure rates decrease