You’ve likely heard it at least a million times during this pandemic, “it’s a sellers market!”, but what does it actually mean? Well, it means a few things! Simply put sellers have the advantage because there are more buyers looking for homes, than there are sellers selling right now.
In this type of market you will see many houses getting multiple offers, cash offers, crazy over asking price offers, and buyers willing to give up many things just to secure the home for themselves. Historically we have considered the market to be in the sellers favor when there are 6 months or less of inventory available, but for much of 2020 and 2021 here in West Texas we have been seeing inventory as low to 1-2 months. Meaning, that if all the homes currently on the market today all sold and nothing else came on the market, we would run out of homes in one to two months.
What causes this? The main driving factor here are historically low interest rates. In 2020 the FED did everything they could to lower these rates to help stimulate the economy during a very trying time in our nations history, so we have seen absolute historically low interest rates, between 2-3%. This year we will begin to see those numbers come up, they already have where now they are around 3-3.5%, but another driving force in making this market a sellers market is a large influx of buyers we are seeing. We have many moving from other states right now, primarily California and New Mexico, and many of these folks have cash, and are coming from markets that are so inflated our home prices seem low.
What does this mean for you? It’s a great time to sell. If you have considered selling your home you’re likely going to get top dollar, potentially multiple offers on your home, and you can choose a situation that works best for your family. How about if you’re a buyer? Well, it means you should be patient. You may have to put in MANY offer before winning, you’ll have to be quick and trust your realtor to keep a close eye on everything coming on the market. It may be tougher to be wise as a buyer right now, but stick to your guns! The reality is if you’re a first time home buyer, this likely won’t be your forever home, don’t deplete everything you have just to win right now. Take your time and trust the process. For more information on this subject head over to our “Meet the Team” tab and contact one of our agents, or you can visit our YouTube Channel “Lubbock is Home” linked below to see a short video.
