If you pay any kind of attention to real estate, you're probably aware we're in a Seller's Market (as of this writing, which is late Summer 2021). I studied Economics a bit back in my college days, and some of that education is helpful here because the foundation of any real estate market, even this crazy one, is plain old supply and demand.
A Seller's Market is a housing market where there is a shortage of supply. That means there aren't enough homes for the buyers out there. This results in more aggressive buyers, multiple offers, and typically, offers submitted over list price.
On the flip side, a Buyer's Market is one where there are more houses available to buy than there are buyers out there shopping, otherwise known as supply exceeding demand. The result of this market type is just the opposite, the buyer has the advantage. It's likely a seller will accept an offer at list price or even under.
Knowing all of this, it seems simple, right? Sell your house in a seller's market and buy in a buyer's market. Unfortunately, that's not always an option, because you know, life.
Here are some thoughts to consider about a real estate market:
Life happens regardless of what the real estate market is doing. People change jobs, get married, have kids, along with many other really good reasons for buying or selling a home. That's okay, it's not impossible, just be sure to have an experienced realtor on your team.
Studying how supply and demand works is a bit easier than following it in real life. This current market, for example, is exaggerated because of the attractive interest rates available, but world events, local economy and construction costs can all have an impact, though many other external forces can play a part.
Even if you're ready to sell your house, you need somewhere to live. Becoming a buyer is a hurdle for some, which is helping keep this seller's market going. Again, nothing you can't overcome, but good to think out your plans in advance.
The housing market is a cycle, and if nothing else, you can count on the fact that it will change. It will go up, and it will come down, and then repeat.