Have you ever wondered when the best time to buy or sell a home is? Or if some seasons are better than others? Or how much supply and demand really affect pricing? Are these all just fables and superstitions? Not at all. It’s important to pay attention to the housing market. Whether your local area is in a buyer’s or seller’s market could make or break your experience.
Not sure what the difference is? Not to worry – we’re here to give you a crash course!
What’s a Buyer’s Market?
Simply put: a buyer’s market is when supply exceeds demand. In other words, the real estate inventory is high, with plenty of homes for sale, but there’s a shortage of interested buyers.
In a buyer’s market, real estate prices decrease, and homes stay on the market for longer. In order to entice buyers, sellers steadily lower their prices in hopes of snagging an uncertain buyer. A buyer’s market makes sellers much more willing to negotiate offers so buyers don’t walk away.
What’s a Seller’s Market?
Simply put: a seller’s market is when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage.
In a seller’s market, homes sell fast, and buyers compete with each other to secure a property. In these market conditions, buyers often offer over-asking in a bidding war, completely skip the inspection phase, or even buy in cash.
What You Need to Know
Before you buy or sell, there are ways to determine if your local area is experiencing a buyer’s or seller’s market. Talk with a local trusted real estate professional today before you miss out!