I am sure you have heard the terms Buyer’s Market and Seller’s Market. But what do they mean? You will want to BUY in a buyer’s market and SELL in a seller’s market. How do you know when you are in a buyer’s market or a seller’s market?
In a buyer’s market, the buyer has the power. More supply and less demand allows you to negotiate better deals if you’re the Buyer. A buyer’s market occurs when the supply (available homes for sale) exceeds demand (the number of buyers seeking to purchase homes). If you’re buying a new home, a buyer’s market is the ideal time to make your move. You might be able to buy a great home for a lower cost than you would in a seller’s market.
In a seller’s market, the seller has the power. More demand and less supply allows you to negotiate better deals – if you’re the Seller.A seller’s market occurs when demand exceeds supply, or there are more buyers seeking to purchase homes than there are available homes on the market. This often leads to multiple buyers interested in a single property, resulting in bidding wars. A seller’s market is a fantastic time to sell your home as you could secure a sale price that’s higher than your listing price.
People often forget that market cycles can change on a dime. A buyer’s market can quickly turn into a seller’s market once all the good deals are gone, and inventory is low. When supply is low and demand is high, prices rise so more people jump in and fuel the frenzy further.
The rules of supply and demand apply to real estate. When supply is low and demand is high prices will rise, when supply is high and demand is low prices will go down.
BUY in a buyer’s market. SELL in a seller’s market.