If you’re considering buying or selling a house in the near future, you’re probably wondering, “Is 2017 a seller’s market?” The answer is definitely yes. Which is tough news if you’re looking to buy, but it’s great news if you’re looking to sell. A combination of factors have made 2017 one of the best years to sell a house in quite some time.
Why is 2017 a Seller’s Market?
- Supply of houses on the market is down.
As of the end of March 2017, the supply of homes is 6.6 percent lower nationally compared to the same time a year ago (Source: CNBC).
- Demand for houses is up.
As there are fewer homes on the market, that naturally creates more competition for the existing houses on the market. A strengthening economy is also a factor. This increased demand is evidenced by realtor.com recently reporting 40 to 80% increases in their home listing views (Source: The Motley Fool).
- As a result, house prices are on the rise.
Reports have stated that homeowners that have sold in 2017 have seen an average price gain of $44,000 from their purchase price (Source: CNN Money). This is largely due to the aforementioned in a decrease in supply and increase in demand. This leads to bidding wars among potential buyers, hoping to acquire a home before the economy drives the prices even higher in the future.
- Interest rates are up.
Increases in mortgage interest rates have made it more difficult for many hopeful first-time home buyers to secure the necessary funding. This another factor that tilts the scales towards home sellers in 2017.
Advice to Potential Home Buyers and Sellers in 2017
For Buyers: Not all hope is lost if you’re hoping to buy a home in 2017. The best way to prepare yourself for this process is to set realistic expectations. You may not get your first choice, but if you exercise patience you can still find yourself a home that you’ll be more than happy with. Also, seek pre-approval on a mortgage early on in the process. That way there will be no wasted time once you find the right house.
For Sellers: Every case is different, but all of the conditions exist for you to maximize the value of your home. You could choose to hold onto your home and build equity, but there are no guarantees that the market will be as seller friendly as it is now in the years to come. If you’re in a position to do so, this is a great time to cash in on the current housing market.
If the thought of a traditional home sale process is stressful, consider the option of selling your home for cash! It’s a much shorter and less complicated process. Contact us here for more information.