Weekly real estate update 8/20/21… what does a seller’s market really mean?

Showings continue to drift along in the dog days of summer, hanging below the last two years but following the same trends.

ShowingTime Stats 2021-08-18

New and coming soon listings are lackluster but ahead of last year, while pending listings are behind last year.

Market Stats YTD – 2021-08-20

Redfin reported this week that the national bidding-war rate dropped to the lowest level since January nationwide. However, Minneapolis bidding wars were reported as still ahead of January. The way I describe the current market is competition is less intense, but still there. Instead of 20 offers on a property there may be only 5. Price and inspection are still the biggest hot points. Appraisal gap coverage is still a concern, but with so many sales closing above list price it isn’t as big a worry getting comps as it was earlier in the year.

With only 1.3 months supply of inventory in July, we are still in a very strong seller’s market… but what does that mean exactly? The post below from our blog at Keeping Matters Current explains it on a national level. The national months supply is higher than our supply here in the Twin Cities, but the principles are the same.

Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com


sold with multiple offers

What Does Being in a Sellers’ Market Mean?

Whether or not you’ve been following the real estate industry lately, there’s a good chance you’ve heard we’re in a serious sellers’ market. But what does that really mean? And why are conditions today so good for people who want to list their house?

It starts with the number of houses available for sale. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):What Does Being in a Sellers’ Market Mean? | Simplifying The MarketWhen the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which leads to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer. As this happens, home prices rise, and sellers are in the best position to negotiate deals that meet their ideal terms.

Right now, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and the ongoing rise in remote work have prompted buyers to think differently about where they live – and they’re taking action. If you put your house on the market while supply is still low, it will likely get a lot of attention from competitive buyers.

Bottom Line

Today’s ultimate sellers’ market holds great opportunities for homeowners ready to make a move. Listing your house now will maximize your exposure to serious buyers who will actively compete against each other to purchase it. Let’s connect to discuss how to jumpstart the selling process.

Written By

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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