What is a Seller’s Market? To put it simply, a seller’s market is one that has more buyers than sellers, which in turn results in higher prices from the excess of demand over supply.
A few years ago, during the recession, homes could sit on the market anywhere from 12 to 24 months. Today it’s not uncommon to see properties sell in 2 to 3 weeks or less. The number of new listings in 2012 was down 5.2% compared to 2011 but closed sales were up 19.1%. This has created a situation where the absorption rate, (the number of months it would take to sell all of the current listings at the current rate of sale) is at just 3.6—the lowest it’s been since August of 2006. For perspective, it was 11.3 just over a year ago!
Mortgage Interest rates continue to be low with 15 year fixed mortgages below 3 percent. See below for the most recent interest rates provided by Northwest Mortgage Group.
While rates have been in the 3 percent range in the last several months, consumer confidence is slowly rising and, with that, we can expect to see Interest rates follow. Have you been thinking about selling your home? Give your Lee Davies Real Estate broker a call to discuss how the current state of the market relates to your goals.
