Is This A Buyers or Sellers Market?
If you are thinking about buying or selling your home, you must be thinking: Is this a good time to sell? Is this a good time to buy?
The real estate prices and market conditions are constantly changing not only seasonally, but also due to a variety of factors, such as location, type of home, condition of the home, interest rate, unemployment rate, consumer confidence, affordability and population growth to name just a few. However, the Law of Supply and Demand is the most used predictor to determine what type of market we are in.
There are three distinguished Real Estate Market Types that use the Principles of Supply and Demand:
1. The Balanced Market
The balanced market is when there are equal numbers of active buyers and active sellers in the marketplace. Prices are stable and homes sell within a reasonable time frame. Both buyers and sellers have an equal opportunity to negotiate the terms of the deal. It is a healthy real estate market that is good for both parties.
2. The Buyers' Market
The buyers market is when there are more homes for sale than there are active buyers (high supply and low demand). In a buyers' market, buyers have the advantage as there is more inventory (homes) to choose from and fewer buyer in competition. In this type of market, prices remain stable or sometimes soften with sellers being more open to negotiate.
3. The Sellers' Market
The sellers market is when there are more active buyers than there are homes for sale (high demand and low supply). In a strong sellers' market, sellers are in the driver's seat. Homes sell quicker, prices are strong and increasing, and in many cases sellers get multiple offers.
For more information on what market type we are in right now, let's connect. Call or message me here.
