Many will say that we are dealing with the strongest seller's market we've had for decades.
Well, what does that mean? In a nutshell, it means that it's easier to sell a house than buy a house and that the seller will get the better deal. Real estate statistics can get a little boring but in essence, we figure this out by looking at the "Months Supply of Inventory".
Months Supply of Inventory is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. Generally, if there are 6 months or more, it's a buyers market, and if there are 6 months or less it's a seller's market.
You can see below that in August we had 4.7 months of inventory which is a little better than this spring but still offers the sellers the advantage. You'll also find below that sellers are getting on average 98.1% of their asking price, which is amazing!! Certainly, a good time to sell... but what if you need to find a new home... how does that work?
Well, herein lies the issue with moving right now. If you have a great home and you want top dollar it does make sense to put it on the market, but where are you going to move? It has become increasingly hard for buyers to find homes in Monroe County that fit their needs. To get around this issue there are a few things to consider.
1. You can list your home contingent on finding suitable housing. Buyers don't love this, but with the market as tight as it is it can sometimes be negotiated.
2. You can go look for new homes before placing your home on the market and make an offer on that home contingent on selling your home. This isn't great either, and because it's such a seller's market right now, this offer will often lose out to stronger offers without contingencies.
3. You can negotiate the closing or possession date. Sell your home with terms in the contract allowing for an extra month to find a home. This can be done by moving out the closing date or allowing possession to the sellers after the closing occurs. (This usually will require a separate lease agreement).
4. Decide you are willing to rent short term so you can take advantage of getting top price for your property. Even if only for a month or two this can give you a very strong upper hand. If you decide you are willing to make this sacrifice it helps you two-fold. Firstly, it allows you to get the best price for your home without having to stress about finding another home at the same time, and fighting for a contingency to find suitable housing. Secondly, when you go to buy your next home it also alleviates a lot of pressure because you don't have to make an offer on a home TODAY! AND you don't have to make an offer contingent on selling your house, which really gives you a strong advantage as a buyer.
Oh, I guess I missed one option - find yourself the best real estate agent and become a real estate ninja - have both homes close on the same day. Pack up - go to close and unpack that same day in your new home. This can be tricky but it can be done. It requires great organization and planning.
I hope this sheds some light on the current market conditions. It can be confusing so if you have any question at all, just give me a jingle. I'm here to help however I can.