Posted on November 26, 2023 in

High property demand, low supply – the impact of a seller’s market

When there is a trend where property demand has soared while the available supply remains on the lean side it creates what is commonly referred to as a seller’s market—a scenario where those putting their homes up for sale hold a significant advantage.

The first thing to understand is that a high-demand and low-supply environment inevitably tilts the playing field in favour of sellers. With a multitude of eager buyers vying for a limited number of properties, the competition intensifies, often resulting in multiple offers and, subsequently, increased property prices.

For sellers, this is the ideal scenario. The scarcity of available properties puts them in a prime position to fetch top dollar for their homes. However, for potential buyers, navigating a seller’s market requires strategic thinking and a willingness to act swiftly.

During such times, it is beneficial to be well-prepared. If you’re selling, capitalise on the market conditions by presenting your property in the best possible light. Quality marketing, highlighting unique selling points, and setting a competitive yet realistic price are crucial.

On the flip side, buyers need to be proactive. In a seller’s market, hesitation can be a costly decision. Get your finances in order, be clear about your non-negotiables, and work closely with your agent to stay on top of new listings.

For those looking to enter the property market, particularly first-time buyers, a seller’s market can be a challenging landscape. However, it’s essential to remember that market conditions are cyclical. A seller’s market today may evolve into a more buyer-friendly market in the future.

Being aware of the dynamics of a seller’s market is key for both sellers and buyers. Having a trusted local agent who will guide you through these fluctuations will ensure a smooth and successful transaction. Feel free to reach out to our team if you have any questions or if you’re considering making a move in the current market.