Benefits of Selling Your Home in a Low-Inventory Market

When it comes to selling your house, you're likely managing the ever-changing real estate market and your own needs as you prepare for your move.

The low inventory of homes on the market right now could be to your advantage as a seller. Here's what you need to know about the current situation and how it could impact your sale.

The Supply of Homes for Sale Is Far Below the Norm

When selling something, it's best if it's in high demand and low supply. This makes it more desirable, since there's not enough to go around. This is exactly what's happening in the housing market today, with more buyers than homes for sale.

To illustrate the extent of the housing supply shortage, here's the most recent data on active listings, referring to homes currently up for sale. The chart below utilizes data from Realtor.com to demonstrate the contrast between the number of active listings in September of this year and the typical market conditions.

As indicated in the chart, a comparison between the recent figures for this year (represented by the red bar) and the last typical years in the market (illustrated by the blue bars) reveals that the housing inventory remains significantly below the usual levels.

What That Means for You

In today's low-inventory market, buyers have fewer choices than they did in previous years. This means that sellers are in a good position to get a good deal on their home. Priced-right homes are selling quickly, and many seller are receiving multiple offers from eager buyers. According to the latest Confidence Index from the National Association of Realtors (NAR):

• Homes are selling quickly, with 69% selling in less than a month.
• The average home is receiving 2.6 offers.

A Realtor.com article explains how the low inventory of homes for sale benefits sellers.

". . . houses remained on the market for a period two weeks shorter this past month in comparison to the typical September between 2017 and 2019 . . . a result of the ongoing scarcity of housing stock, which prompts homebuyers to act swiftly . . ."

Bottom Line

Buyers are eager for more options in this low-inventory market, and your home could be the perfect fit. If you work with a trusted local agent to price your home competitively, you could sell quickly and potentially receive multiple offers.