Low inventory is good for sellers.
Low inventory can be good for sellers. When fewer homes are available, i.e., demand is greater than inventory, competition is tighter and buyers tend to snap up something quickly…or lose the chance to get what they want.

Having a low housing inventory means the number of available homes for sale is significantly below the demand from potential buyers. This is good for the seller, because in a low inventory market, sellers typically have the upper hand if there are more buyers searching for homes than homes that are actually on the market. As a result, if the home or property is priced correctly and well-maintained, expect to receive multiple offers in short time frame.

However, there are several caveats.
Price. If the price is too high—and many sellers over-estimate the real value of their property, it will stay on the market too long. Savvy buyers will notice and wonder what’s wrong with it. When you are working with a realtor, they will help you arrive at the right price for the location and regional market.

Condition. If the house is not well maintained, and doesn’t have “curb appeal,” buyers will keep on looking. Your realtor will advise you about things that should be repaired…before you put your property on the market. If you don’t, expect the buyer to request a lot of concessions, which could significantly lower the final price.

Staging. It’s also a good idea to ‘stage’ it so it looks less like ‘your’ home and more generic so buyers can envision how their own furniture will look. [Related story on staging.] If buyers look at it, and go,”Oooh, I hate that furniture; it’s ugly and there is too much of it,” they aren’t looking at your house, they’re looking at what’s in it. A staged nearly empty house, sells much quicker.

Mortgage Rates. “One reason inventory is so low nationally is that many homeowners were able to lock in record low interest rates in 2020 and 2021. Mortgage rates have skyrocketed since then—the rate for a 30-year fixed mortgage reached 6.7% on March 9, nearly double that of a year ago, according to Freddie Mac. That means that homeowners who bought or refinanced with low interest rates are reluctant to sell their homes and buy another with a mortgage with a much higher interest rate.” [Time Magazine, March 2023]