You have heard that the pandemic created a sellers’ market in 2020. What exactly does a “sellers’ market” mean? Basically, it means that the demand for homes is higher than the supply in the market. How can this be when unemployment rates were at all-time highs? There are a couple of reasons.
- Many sellers that had their homes listed prior to the pandemic, pulled the listings off the market to wait and see if there were going to be any adverse impacts from the COVID-19 pandemic. When sellers pulled listings, this immediately decreased the supply of available homes in the market creating a shortage.
- The historically low interest rates encouraged buyers to go ahead and make that new home purchase they had been thinking about.
Experts agree there are many other reasons like a mass move out of bigger cities, residents that were forced to stay at home realized they needed bigger living spaces and more conducive to remote working and schooling, and the list goes on. The bottom line is that residential home sales in most areas have come out a winner in this pandemic.
Does this mean that buyers should be discouraged from purchasing real estate? Absolutely not! However, keep in mind that you shouldn’t low ball your offer. A seller’s market is no time to do that. Work with a real estate agent and have them conduct a comparative market analysis and make a reasonable offer based upon your findings. A comparative market analysis examines similar properties that have recently sold.
Finally, working with a real estate agent will help you navigate the market. A real estate professional will help you negotiate deals and guide you through the entire process. Stutesman’s Action Realty will always treat you fairly showing consideration for your time and giving you all the truthful facts and information to help you throughout the entire real estate transaction process. Call today and put your new real estate team to work for YOU!