Wednesday, January 26, 2022 / by Cindy Bunch
What is a Seller's Market?
We’ve all heard a seller’s market occurs when the supply of listed homes for sale is less than buyer demand. But what actually signals to us real estate agents that the market has shifted to majorly benefit sellers and what does it mean for YOUR bottom line?
Here’s a snapshot of the numbers that Realtors look at to best identify the market. If you like crunching numbers and looking at the data, you’re going to love this!
Month's supply of homes for sale:
This is the number of active listings over the number of total homes selling per month. Essentially, the lower the number, the tighter the market.
Locally here in Buford, GA, at the end of 2021, we currently have a .6 months’ supply of homes for sale. That is extremely low!
Average Days on Market:
Looking at the same time period year over year, average days on market shortened from 30 in to only 18 days on market on average in Buford from 2020 to 2021! That means homes are selling fast!
Sales Price versus the Original List Price:
Here in Buford, the average sales price was 100.8% of the original list price, meaning on average, homes sell for OVER list price!
Our team has been selling real estate for over 21 years and we’ve never seen the final sales price compared to the original listing price to be over 100% at such a consistent rate.
Today, there are truly not enough houses available on the market to be close to meeting the number of buyers actively looking to purchase.
Active inventory remains scarce and buyers of all types are increasing. The number of first-time buyers went up year over year and a lot of investors are entering the market to capitalize on profits. This makes the competition fierce and is only good news if you are in the position to sell.
According to the National Association of Realtors, most agents report an average of 4 offers per house. This gives a lot of negotiating power to the seller to get top dollar and the best terms, so if you are thinking about listing during this hot seller’s market, now is the time.
This article is brought to you by Cindy Bunch, Realtor with the Bunch Team Realty Group at Keller Williams Atlanta Partners. Learn more about our team and reach out to us anytime to help with your real estate goals.
Looking ahead into 2022, our team remains excited for what the market has in store. To learn more about what to expect in the coming year, check out our blog: What Do Homeowners NEED to Know Going into 2022?