When you think about the value of your home, are you considering what the market conditions are? A great tip to consider is how many homes are for sale in your market that are similar to yours, REALLY SIMILAR, what have those homes sold for in the past 6 months.

The housing market behaves very similar to the consumer goods market. What is the thing that is most in demand at the current time and how much supply of it there is readily available.

It’s important to remember that the public creates the market (along with mortgage interest rates and many other political/social factors). In some areas right now, they are experiencing very high demand which has created a sellers market. In a sellers market, there is short supply of homes and a high demand of buyers, giving sellers leverage and this is where we see sales prices increase greatly from asking prices.

Other areas are going through a buyers market right now. Homes in buyers markets are in high supply, therefore giving buyers more leverage. Days on market for properties in these ares are also higher than those in sellers markets. Prices come down to meet the excess of supply.

Think about it like a specific popular commodity that everyone wants to buy, when in low supply, the market dictates the price and that price increases. When in high supply, the market value is lower.

 

Do you want to know your  home’s market value? Call me to get a comprehensive market valuation so you can rest easy. Michelle Mumoli, 917.268.8916