Lincoln’s been in a seller’s market for the last several years. But what does that really mean?
Clearly, a seller’s market benefits the seller. Right now Lincoln’s inventory of available houses for sale is extremely low. Sellers don’t have a lot of competition from other sellers, so buyers only have a limited number of options. The law of supply and demand tells us that when supply is low, prices will go up. It also means we’re likely to see multiple offers frequently – a larger number of buyers chasing a limited number of homes.
The conventional wisdom in real estate is that a balanced market – favoring neither the buyer nor seller – is a 6-month inventory of homes. That means if no other homes came on the market during that time, it would take 6 months to sell all the homes for sale.
In most price ranges, Lincoln currently has between a 1.5- and 4-month supply of houses. Advantage – seller.
At some point in the future, the market will shift, and buyers will have the edge. What will that look like? We’ll have an abundance of homes to sell – buyers will be able to wait longer for the right house, and won’t face as much pressure to pay top dollar. Sellers will have to make sure their home has that ‘wow factor’ and is priced correctly in order to sell quickly.
The market is cyclical by nature, and right now the sellers have the clear advantage. For buyers, though, interest rates are still very low, so if it makes sense to buy instead of rent, or move up from an existing home, they shouldn’t be completely discouraged. There’s opportunity for everyone – if you’re considering a move, let’s talk and figure out how we can make the market work in your favor!