Buyer’s Market Vs. Seller’s Market: What Does Each Mean For You, And What Is The Current Market State?

Recent Sales

Check the recent sales of properties comparable to your own or the one you’re interested in. If you find that homes generally have been selling above ask, it’s a good indication that you’re in a seller’s market. If they’ve been selling below ask, signs point to a buyer’s market.

Pricing

In a buyer’s market, sellers will often drop their asking prices. When looking at current listings, review the price history. If you see that the prices of a number of homes have been cut recently, you can assume that it’s a buyer’s market. (Though, be aware that sellers may have unrealistic expectations about their homes’ value, so make sure that what you’re noticing is a trend, not just a single occurrence.)

Time On Market

The number of days that a home is on the market is another strong indication of housing conditions. Homes sell faster in a seller’s market and take more time to go under contract in a buyer’s market.

Market Trends

Knowing if home prices across your area have been increasing or decreasing is the strongest indication of whether it’s a seller’s or buyer’s market. The easiest way to gauge if housing prices are rising or falling is to look at market trend reports. Rocket Homes^Ⓡ provides a free report of market conditions for anyone who creates an account. By searching the location you’re interested in, you’ll be given an option to see location trends.

Is It A Buyer’s Or Seller’s Market?

As of summer 2023, there continues to be an intense seller’s market in the United States.. In fact, some are anticipating the rest of the 2023 real estate season to begin looking a little more “normal” as the market slowly begins to balance back out.

The Bottom Line

When buying or selling property, it helps to know where the market stands. As a buyer, you’ll want to purchase a home in a buyer’s market, as there will be an influx of available homes and less competition. But as a seller, you’ll be hoping that you list your house during a seller’s market, so there are fewer properties for sale and a substantial number of buyers interested.
If you’re looking to buy a home, a seller’s market shouldn’t necessarily put you off, but it can help you determine your next steps. In a hot housing market, you’ll find that homes disappear as soon as they hit the market. That means that instead of leaving your financing to the end, you should start your initial mortgage approval today so you don’t lose out on what could be your dream home.