With listing prices seeing their fastest growth since January 2018, home sellers are firmly in the driving seat when it comes to sales negotiations, experts say.
Realtor.com reported in its latest Weekly Recovery Report covering the week ending August 15 that median listing prices in the U.S. are up 10.1% compared to the same time one year ago, thanks to a combination of strong demand and low inventory.
“With supply and demand moving in opposite directions, sellers are clearly gaining the upper hand in the market as buyer competition builds up and prices gain momentum going into the fall,” said Javier Vivas, director of economic research at realtor.com. “Buyers hoping to close on a home this year should expect some hot competition, especially if they are looking at more affordable or entry-level housing.” Buyers who want to get ahead of the competition should consider getting preapproved for a mortgage so they’ll be ready to make offers quickly, Vivas adds.
The good news is that more listings do seem to be coming onto the market, which should mean more choices for buyers in the future months.
“The lack of options of homes for sale has been a key factor limiting buyers in the market, so continued recovery in new listings is key for home sales and overall market health in the coming months,” realtor.com’s report noted.
Another interesting stat from the report is that homes are spending less time on the market, selling four days faster than last year, underlining the strong demand the market is seeing currently.
Realtor.com says we’re currently in a strong seller’s market. It said that sellers are holding the upper hand, homes are selling quickly, and buyers are feeling increased pressure to find a home that fits their needs.