Before undertaking any type of real estate transaction—buying, selling, investing, renting, etc.—it’s important to first understand the conditions driving the market, and how they will affect you. This might include how much you pay for a property or make on its sale, how long you wait, and how much competition you have. Here’s what current Sheridan market conditions could mean for you.
It’s a Seller’s Market
There are two predominant terms in real estate used to describe whether current market conditions favor property buyers or the sellers. A buyer’s market will favor buyers, where a seller’s market is preferable to—you guessed it—sellers.
A buyer’s market typically means there are significantly more sellers than buyers. A seller’s market, on the other hand, usually coincides with a shortage of inventory, or homes for sale. Currently, we are experiencing a seller’s market.
Here’s What’s a Seller’s Market Means to You
Thanks to a dwindling number of homes for sale, as well as continuously strong buyer demand, the US has been experiencing a seller’s market for the past few years. Here’s how that affects you as a buyer or seller.
Prices may be higher
Because inventory is low and demand is high in a seller’s market, prices often climb as a result. This could prove even more dramatic should two buyers place similar offers on the same house, leading to a bidding war.
This year’s market may prove a bit less predictable, however, thanks to the pandemic-driven volatility of the economy. Economists do expect prices to drop, though not significantly, as the real estate market adjusts to factors such as prolonged business closures and unemployment.
It’s also important to keep in mind that interest rates are near an all-time low right now. For buyers, that means higher prices might be offset by lower interest rates.
Buyers likely have more competition
Seller’s markets are often indicative of competition between buyers. If there are a limited number of homes in a particular location or price range, eager buyers will likely have less time to ponder before making an offer if they hope to beat out the competition and avoid a bidding war.
Homes may move quickly
Highly competitive markets often require buyers to move quickly, especially in hotspots like LA, NYC, or DC, where homes sometimes list and sell within hours. Fortunately, we in Sheridan typically see more relaxed turnaround times, but the right property at the right price will still move quickly.
Sellers might not see much opposition
If homes are limited, there’s a good chance a seller might not see too much competition—that is, homes with similar amenities or features in the same price range. This is excellent news for sellers, as a limited number of choices will funnel buyers towards fewer homes, but it’s important to keep in mind that an overpriced home will likely be unappealing to buyers no matter the market conditions.
A good agent will always be important
Regardless of whether you’re buying or selling, at the top of the market or bottom, in buyers’ conditions or sellers’, the agent you choose to work with can still make all the difference. For buyers, the right agent means finding a home you love at a price that fits into your budget. For sellers, the right agent means gaining equity while closing quickly. For both, it means a stress-free and wallet-friendly experience.
Ready to Make a Move in Sheridan, WY?
Are you thinking of buying or selling a home in the Sheridan area? We’d love to help! Contact Century 21 BHJ Realty today to learn more about how we can help you find the right home or get top dollar for your property. We’re just a phone call away!