Large and small market inventories are both at record lows because of low borrowing rates and epidemic demand. Now we can imagine a return to a more normal real estate market.
Listings were up 10.9% month over month and 10.9% year over year in June, according to Realtor.com’s June 2021 housing data (5.5 percent higher). Normally, listings decrease from May to June.

There are signs that more homeowners will be ready to put their homes on the MLS due to the widespread usage of COVID vaccines and the return of pre-pandemic lives and activities in many places. A good thing for buyers who, over the same time period, may have been unhappy with hot and competitive acquisition processes.
How might rising home inventory affect sellers?
Like many homeowners, you may have waited for signs that your neighbors were selling before listing your own home. If so, June’s housing numbers may have been just the thing. If you’re thinking of selling your home, here are some market trends to keep in mind.

Assurance of purchase

Many homeowners who wanted to move, upsize, or downsize were afraid of losing their home if they sold it. However, if inventory improves, it may be time to start looking at available residences and developing a purchase strategy with your realtor.

Marketing is gaining importance.

It’s possible that many homeowners have become complacent about marketing their property, forsaking photography, in-person showings and other traditional marketing approaches for the guarantee of a speedy sale. Sellers should expect a more traditional marketing plan that includes decluttering, staging, photography, and video tours.
Extra market days

While recent overnight sales have delighted many homeowners, increased inventory may mean more days on the market before a contract is signed. This can be good news because pent-up demand means more interest and higher sale prices.

More negotiating is needed.

Afraid of asking questions? It’s time to modify your expectations. Inventory may encourage buyers to inspect homes and tolerate major defects as a necessary cost of doing business. Expect to negotiate over timing or needed repairs rather than price.

How might more home inventory affect buyers?
Whether you’ve put off buying a home to wait for a better market or were annoyed by previous discussions, more housing inventory may be ideal for moving forward. Consider how having more properties for sale may benefit you.
Less competitive purchase environment

We’ve all heard the stories about run-down properties selling for tens of thousands of dollars over asking price in hours, with dozens of offers. As inventory levels rise, we should see fewer of these situations. The overwhelming speed and competitive pressure should be decreased.

Renewed negotiating power

Multiple offers and a hot seller’s market left homeowners with little or no opportunity to negotiate. With fewer offers and longer days on the market, buyers may be able to negotiate fair compromises, such as needed repairs or mutually beneficial deadlines.

aA renewed focus on contingencies

The house inspection and financing have been major concerns for many prospective purchasers in recent months. They feared losing negotiating power if they requested contingency protection. Buyers can determine what technique is appropriate for their situation and ask for what they need without fear of losing the transaction.

More stable home values

While many sellers have rejoiced in their rising home values, many buyers have grown increasingly concerned. Buyers were continuously priced out of their favored markets and home styles as values increased. With normalized inventory, buyers may be able to determine their budget and expect to stay within it.

Anyone interested in buying or selling a home should contact a competent real estate professional. An agent can help you understand market trends and design a strategy to help you achieve your real estate goals in the months to come.