Why It’s Still a Sellers’ Market?
The Tyler area housing market has cooled off since interest rates started rising at the beginning of this year. Some of our clients are asking if they missed the best time to sell their house. If you’re thinking of making a move, you should know that it’s not too late to list your house.
Even though the supply of Tyler area homes for sale has been growing this year, there’s still not enough homes for sale to meet all the demand we are seeing from buyers. Conditions continue to favor Tyler sellers. The inventory of homes for sale mostly determine if buyers or sellers have the most negotiating leverage.
- A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.
- In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.
- A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
And for the past two years, we’ve been in a red-hot sellers’ market because inventory has been near record lows. The blue section of this graph highlights just how far below a neutral market inventory still is today.
What Does This Mean for You?
Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, saying:
“Overall, the best summary is that we’ll move from a gangbuster sellers’ market to a modest sellers’ market.”
Conditions are still in your favor even though the market is cooling. If you work with an us to price your house at market value, you’ll find success when you sell your house today. Buyer demand is softening due to higher mortgage rates, but homes that are clean, and cute, and priced right are still selling fast. That means your window of opportunity to list your house hasn’t closed.
Here’s the Deal
Today’s housing market still favors sellers. If you’re ready to sell your house, let’s connect so you can start making your moves.