A hot real estate market can seem like the answer to your prayers if you’re ready to sell. And in many parts of the country, homes are selling at a faster rate in 2016 than in 2015, says Ralph McLaughlin, Trulia’s Housing Economist.
To prepare your home for sale in a competitive market, it’s important to understand the definition of a “hot market.” “We define a ‘hot market’ as one where most homes sell faster than two months,” says McLaughlin. Inventory is a major factor in creating hot markets: Where there are fewer homes on the market, the demand rises, and homes typically stay on the market for a shorter amount of time. For example, Colorado Springs, CO, has experienced a large drop in available homes for sale in 2016, coupled with a faster turnaround in homes for sale, making the market extremely competitive.
Yes, it’s great to own a home in a seller’s market, but don’t jump for joy just yet. There are also some potential downsides you’ll need to consider before listing your home for sale. Here are five scenarios in which a seller’s market can actually be problematic for sellers: Heed the following tips to help ease the burden.