Austin is in an Extreme Seller's Market. But What is a Seller's Market?
Even if you’re not in the business of Real Estate, it’s likely you’ve heard the term “Sellers’ Market”. And here in Austin, we are in an Extreme Sellers’ Market. Austin has been hot for decades, but with each passing month, a new unprecedented number of people are moving into the city and surrounding areas, creating an extremely high demand for housing.
So, what is a Sellers’ Market, anyway?
Put simply, the definition of a sellers’ market is when there are not enough homes for sale to meet the demand of the number of people who want to buy. Yep, it’s the old economic principle of Supply and Demand going to work in the housing market.
If you’re a BUYER in a Sellers’ Market, you can typically expect to pay a premium for your new home. On the other hand, if you’re a SELLER in a Sellers’ Market, you are at a big advantage, and can typically get top dollar for your home if you have the right agent to help ensure this happens.
Hence the term, “Sellers’ Market”, because the seller has the upper hand in the negotiations.
Take a look at this quick video we recorded that explains a bit about this Extreme Sellers’ Market in Austin:
So if you’ve flirted with the thought of selling your house, or wondered what it might be worth, there has been no better time in Austin history – financially speaking – to turn that thought into action.
Here in Texas, most dramatically in the Austin area, we are in the Ultimate Seller’s Market.
Just take a look at chase the latest Existing Home Sales Report from The National Association of Realtors (NAR), which shows the inventory of houses for sale is at a 2-month supply at the current sales pace – which is EXTREMELY low. Historically, a 6-month supply is necessary for a ‘normal’ market.
So when the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes. As a result, competition among purchasers increases and more bidding wars take place, making it essential for buyers to submit very attractive offers (read: top dollar offers).
As this happens, home prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, you are more likely to get competing offers and the highest possible sales price.
With all of the attention that the Austin area is getting – businesses moving here, desirable lifestyle, great schools, etc. – combined with low interest rates, buyers are flocking to the area and there are simply not enough homes to meet the demand.
What This Means For Sellers
Home prices are continuing to increase in this Austin Sellers’ Market. There is a lot of speculation about whether this will continue, for how long, and what will happen in the aftermath. The truth is, however, no one knows for certain what will happen in the future, and putting your house on the market in the coming weeks and months will give you the best chance at competitive bidding, and in turn, the highest price for your home.
What Should You Do Next?
If you are wondering what your home can sell for in this Extreme Sellers’ Market, contact us here to start the conversation! Or simply text or call us (Karla and Victor) at 512-909-1532. We’re happy to chat with you and answer any questions you have, no obligation.
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Karla And Victor Aguilar
Agent/Team Lead | License ID: 0664760
Agent/Team Lead License ID: 0664760