What is a Seller's Market?
You hear a lot of talk in the Real Estate community about what type of market we are in currently. There has been a dramatic shift over the past few years putting a lot of Maine firmly into a Seller's Market.
What does that mean?
In a Buyer's Market...
there is a large supply of real estate on the market...more inventory than buyers. In this case, prices tend to be lower, and property tends to sell more slowly.
In a Seller's Market...
there is a large supply of buyers looking to buy...and less inventory for those buyers to choose from. In this situation, prices tend to rise, tend to sell more quickly, and properties start to get multiple offers.
A Balanced Market...
is when there is roughly a 6 month supply of inventory on the market. This is a more balanced scenario...not strongly favoring the buyer or the seller.
In Androscoggin County...
at the beginning of 2015, there was just over 8 months of residential inventory on the market. It was a buyer's market. At the beginning of 2016, there was just over 6.5 months of residential inventory on the market. A more balanced market. At the beginning of April 2018 there was only 2.5 months of residential inventory on the market.
In Cumberland County...
at the beginning of 2016, we are already firmly in a seller's market. There was only just under 3.5 months of residential inventory on the market. The market has been changing quickly, however. At the beginning of 2012 there were about 8 months of residential inventory on the market. At the beginning of April 2018, there was less than 2 months of residential inventory on the market in Cumberland County.
In this market, you have to be ready to make decisions quickly! For sellers this means being ready for many showing very quickly & having a plan for where you will move. For buyers, being pre-qualified and ready to make an offer is more important than ever. Multiple offers are even becoming common.
Are you considering buying or selling in today's very competitive market? Don't you want a professional on your side to help you navigate?
Give us a call today to put our team to work for you!