As Inventories Shrink, So Do Seller Concessions

The National Association of Realtors confirms that a seller’s market is emerging, characterized by fewer concessions, as the supply of available homes falls and property prices rise. A buyer’s market has been in place over the past six years, with NAR reporting that 60 percent of sellers dangled incentives to attract buyers in 2012. Most often, sellers offered a free home warranty policy, valued at about $500; shouldered some of the buyers’ closing costs; or pitched in to help pay for renovations or repairs. In tight markets like the District of Columbia, the competitive edge already has shifted from buyers to sellers; and in Seattle, it has reached a point where buyers involved in multiple-bid situations are writing “love letters” in a desperate attempt to win sellers’ favor. Meanwhile, the market is balancing out in locales like Albuquerque. | Read More