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What is a seller’s market, and how does it affect you as a seller or buyer? With the Twin Cities market currently in a strong seller’s market, it’s crucial you know exactly what it means for you. There are a few signs that a given market favors sellers:
- Diminished inventory of homes for sale in the area.
- Rising home prices.
- Multiple offers for homes in your price bracket.
We are currently right in the middle of a telltale sellers market, and we have been for a while. A year ago from today, there were 17% more homes on the market. We currently have about 11,400 active listings, and we consider a balanced market to be around 20,000 active listings. Obviously, this diminished inventory means there is less selection for people looking to buy a home.
With the diminished inventory we’ve seen a rise in prices. Year over year, we’ve seen a 3.6% rise in prices, so buyers are having to pay a higher price for their dream homes and, on the other side of the transaction, sellers are often able to maximize the value of their properties.
The last thing we’ve been seeing that is a clear sign of a seller’s market is an uptick in multiple offer situations. These occur when two or more buyers submit an offer on a property, which often results in a higher sales price. Homes that are in good condition and priced competitively often get multiple offers, which is great news for sellers looking to sell fast and for top dollar.
Whether you’re looking to buy or sell, it’s crucial to have an understanding of the market conditions in the area. If you’re a seller who is looking to take advantage of these conditions, or if you’re a buyer who wants to make the most of them, please don’t hesitate to reach out to us. We would love to hear from you!