Even if you haven’t been following real estate news, you’ve likely heard about the current sellers’ market. That’s because there’s a lot of talk about how strong market conditions are for people who want to sell their RCFE homes. But if you’re thinking about listing your house, you probably want to know: what does being in a sellers’ market really mean?
What Is a Sellers’ Market?
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still very low. There’s a 2-month supply of homes at the current sales pace. This is true for traditional single-family homes. The number of month’s supply for RCFEs has not yet been calculated but is also extremely low. Currently, there is not enough supply of great, immaculate, reasonably-priced and profitable RCFEs to meet demand.
Historically, a 6-month supply is necessary for a normal or neutral market where there are enough homes available for active buyers. That puts today deep in sellers’ market territory (see graph below):
What Does This Mean for You When You Sell?
When the supply of RCFEs for sale is as low as it is right now, it’s much harder for buyers to find RCFE homes to purchase. That creates increased competition among purchasers which can lead to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer upfront. This could drive the final price of your RCFE home up.
And because mortgage rates and RCFE home prices are climbing, serious buyers are motivated to make their purchase soon, before those two things rise further. That means, if you put your RCFE on the market while supply is still low, it will likely garner a lot of attention from competitive buyers.
The current real estate market has incredible opportunities for RCFE homeowners desiring to sell. Listing your RCFE this season means you’ll be in front of serious buyers who are ready to purchase.
If you’re considering buying or selling an RCFE, ARF, or ALF, call Michelle J. London, MBA, CPA, real estate broker today at 949-397-4506 for your free consultation and complimentary care home valuation. We will tailor a strategy, designed with your needs in mind, to help you achieve your residential care home dreams! There are still many great opportunities, even with rising interest rates. CALL TODAY!!!