There are different ways to determine a seller's market. When rentals are scarce and rental rates jump up making home ownership more affordable than renting. A scarcity of inventory. This could be specific to a county,or a zip code, or a neighborhood or a subdivision.
Right now you might see prices shifting upward in homes priced $200,000 and under. However, the upper end of the market is flat and in some instances declining.
At this time, you may also discover a surge in new home sales vs resales. Homebuyers looking to reduce their maintenance costs will consider buying a new home with new appliances, roof and air conditioning unit. They can finance the new home at very attractive low interest rates for 30 years versus buying a home and then updating it for a chunk of money that can not be financed but pulled out of savings.
Brock Realty Inc
Additionally, the typical amount of time it takes to sell a home is shrinking. Traditional sellers are now in the range (and passing it fast) of historic norms for a balanced market. In periods where the existing-home sales averaged close to a 6-month supply of homes in listed inventory â€“ we are told it is close to market equilibrium.
In balanced market conditions, home prices generally rise 1 to 2 percentage points above the overall rate of inflation as measured by the Consumer Price Index.
Economist for NAR tell us the current forecast for the median existing home price to rise 4.5 to 5 percent this year and about 5 percent in 2013, which is somewhat stronger than historic norms because of the inventory shortfall that is most pronounced in the low price ranges. CPI growth is projected at 2.1 percent for 2012 and 2.3 percent next year.
Sandra (Voss) LaFlamme,Realtor
It's all about the supply and demand.
Tammy Hayes, Realtor
Green Lion Realty, Port Charlotte, FL
We are seeing though, here in SW FL, at least at certain price points, inventory at or even well under 6 months... so the pendulum is swinging back.