One important thing to remember about the property market is that it’s always in a state of change. Sometimes the market is favorable to buyers and sometimes it’s favorable to sellers. But don’t worry, a knowledgeable agent can guide you in the sale or purchase of your next home, no matter what type of market you’re facing.
A Seller’s Market: A seller’s market is simply a property market that benefits you as a seller. In a seller’s market, there’s a scarcity of properties, which can drive up the price of homes, especially in desirable locations. Sellers must rely more heavily on real estate experts to compete in this type of market:– Lower inventory than previously– More homes are selling faster– Less than six months of inventory on the market– Median sales prices are going up– “For Sale” signs quickly replaced with “pending” or “sold”
A Buyer’s Market: A buyer’s market is literally the opposite. If you’re buying at this time you’ll need help from a real estate expert to evaluate the larger number of homes that are available to you.
Here are signs of a buyer’s market:– Higher inventory than previously– More homes are selling more slowly– More than six months in inventory on the market– Sales prices are shrinking– Fewer sales are taking place– “For Sale” signs stay longer
Markets are always in a state of flux. At its core, people are the driving force behind the real estate market. As more people move into a location, the more need there is for housing. If the number of properties in the area cannot support the number of people moving in, prices of existing homes will likely rise until more homes can be built.
This constant change in the supply and demand in a market is how markets shift back and forth from being more favorable for either buyers or sellers.
Can You Buy in a Seller’s Market or Sell in a Buyer’s Market?Absolutely, but remember, buying or selling in a market that is favorable to the other side is always a challenge. You’ll need determination, knowledge, and most importantly, someone on your side who knows the market inside and out.