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

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

Have you ever wondered when the best time is to buy or sell a home? While certain seasons may be busier than others, the fluctuations within the real estate market have far more to do with the concept of supply and demand than they do with the time of year. That’s why it’s important to pay attention to the housing market and whether your local area is experiencing a buyer’s market or a seller’s market.

Not sure what these terms mean? Not to worry – we’re here to give you a crash course! Read this article to learn about what it means to be in a buyer’s market versus a seller’s market. That way, you can try to time your real estate transaction so that you have the upper hand when it comes to property prices.

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What Is A Buyer’s Market?

A buyer’s market occurs when supply exceeds demand. To put it another way, real estate inventory is high, and there are plenty of homes for sale, but there’s a shortage of interested home buyers. These conditions give buyers leverage over sellers because when supply is higher and demand lower, the market is forced to respond.

What Happens In A Buyer’s Market?

In a buyer’s market, real estate prices decrease, and homes linger on the market longer. So, sellers must compete with each other in order to attract potential buyers. Typically, sellers will drop their asking prices to gain an advantage in the market. Furthermore, they are much more willing to negotiate offers to prevent buyers from walking away.

Tips For Buyers

A buyer’s market is the ideal time to purchase a new home because prices are lower and there are fewer buyers to compete with.
Take Your Time
During a buyer’s market, it’s best to take your time because there’s less of a concern about losing out on a property you’re interested in.