Why Sellers Are Winning Big Today

When selling anything, you always hope for strong demand for the item coupled with a limited supply. That maximizes your leverage when negotiating the sale. Home sellers are in that exact situation right now. Here’s why.

Demand Is Very Strong

According to the Existing Home Sales Report from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021 – the highest home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:

“Sales for the entire year finished strong, reaching the highest annual level since 2006. . . .”

The good news is, demand is expected to remain strong this year as buyers rush to stay ahead of rising mortgage rates and increasing prices. As a seller, that means you can expect there will be plenty of buyers eager to purchase your house.

Supply Is Very Limited

The same report from NAR also reveals the year began with the supply of available homes at an all-time low. NAR notes:

“Total housing inventory at the end of January amounted to 860,000 units, down 2.3% from December and down 16.5% from one year ago (1.03 million). Unsold inventory sits at a 1.6-month supply at the current sales pace, down from 1.7 months in December and from 1.9 months in January 2021.”

Right now, housing supply isn’t just low, it’s very low, and that won't change overnight. That means you may have an incredible opportunity to cash in on the demand for our house. To give you an idea of just how low supply is today, look at the graph below.

High Demand and Low Supply Gives You Maximum Leverage

When there’s strong demand for an item and a limited supply of it available, the seller has maximum leverage in the negotiation. You might already realize this advantage enables you to sell at the best possible price, but it also means you can negotiate the ideal contract terms to suit your needs.

And since demand is so high, there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, work with your agent to look closely at each offer. Make sure you understand all the unique terms and conditions before you make your decision.

Bottom Line

The current imbalance of supply and demand is good news for you. Let’s connect today to discuss how much leverage you have, and why it’s best to sell now instead of later, if you’re ready.