For over a year, the national and local real estate narrative was that it is a seller’s market. Over the last 12 – 18 months, buyers and their brokers have been creatively bending to the whims of sellers seemingly in full control of the prices and the process to relinquish their homes. But while sellers have had the leverage, it is buyers who have realized not only gains in their real estate value but a low mortgage interest rate environment and the pride and security of home ownership. It could be argued that while the process of purchasing a home has changed in the last year-plus, the benefit of today’s market has been felt by both buyers and sellers and has created a sense of more balance than what the headlines portend.
Home sellers and buyers have both seen economic upside and our supply/demand-driven market continues into 2022 with the same theme. That’s not to diminish the frustration of buyers whose contracts were not accepted by a seller or the challenges for some to even enter the market for the first time – but overall, with sales roughly the same over the past few years despite inventory levels, the perceived imbalance of the market may actually be less one-sided. Home sellers have had ample opportunity to realize their gains, diversify their assets and close chapters on periods of ownership, transitioning their homes to a new group of buyers who not only have the pride of ownership and security, but who have generally seen an increase in value – even if they purchased as little as three months ago.
So before we give all the power to sellers, when buyers and sellers can reap the benefits, that is not only a positive for both sides but also for the market.