Why Low Housing Supply Is Best for Sellers: The Top 3 Reasons
Suppose you are following the housing market in central Ontario or anywhere in Canada in 2021. In that case, you may often hear people citing “Inventory is so low,” and they would not be wrong. Low inventory is not just an Ontario problem. It is an issue that affects the entire country, and the low inventory in the housing market is raising prices rapidly.
Why Low Housing Supply is Good for Sellers
It’s not often that a housing shortage benefits a consumer. When competition is so intense, as it is currently, there is no time to waste. To a home seller, the fact that there are not enough homes on the market also means that you can likely get a better deal than if there were many homes on the market. Below are the top three reasons why a low housing supply is good for those looking to sell their homes.
- Higher Home Prices
With so many buyers in the market than homes available for sale, bidding wars are becoming more and more common with homebuyers. This drives up the price of a house. As a seller, this can work to your advantage, potentially netting you more for your home when you close the deal.
- Better Return on Your Investment
As a seller, you have the leverage. When you are selling your house, what matters most is that the property sells — and fast. Putting the house on the market can be stressful, but the sooner it sells, the more money you’ll walk away with. Prices are rising, so your home is gaining value, which in turn increases the equity you have in your home.
Back in the good old days of real estate, sellers who tried to negotiate for the best price often ended with nothing. But today, sellers who have the resources to put their homes on the market are in a position to ask for the best price to be paid for the home’s value.
- Better Terms
HomeSellers also realize that buyers often see a sale of a home as a solid investment. When houses aren’t on the market, they are often sold below market value, sometimes to those looking to flip the property. This means that the buyer has more to gain by buying it than someone who simply wants to own it as a residence. As a seller, you have the chance to secure a higher price and terms.
Don’t Wait Too Long to Sell
Low housing inventory is a big deal if you want to sell your house at the perfect time. While many sellers can negotiate in today’s market, it won’t last forever. Don’t wait until next year when more people return to the housing market, or you risk not being able to sell your house.
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