Buyers market vs sellers market
Maybe you have heard the terms ‘buyer’s market’ and ‘seller’s market’, but do you know what that means? Here are the simple definitions:
Buyer’s Market: supply exceeds demand
So what does that mean? If there are more homes for sale than there are people to buy them, this tends to drive the prices down, making an advantage to a home buyer. Because there are so many properties on the market to choose from, sellers are many times forced to take less money for their home just to get it sold.
Seller’s Market: demand exceeds supply
The opposite is the case in a seller’s market. In this situation there are more people wanting to purchase homes than there are people wanting to sell. This means that there are fewer homes to choose from, and lots of buyers for what is available. This will cause buyers to pay more for what is available to buy.
Are you in a buyer’s market or seller’s market currently? Well, in our area that is somewhat complicated, but the answer is that our markets seem to be fairly stable. There are plenty of buyers but there are also plenty of properties available. One thing we do see is that there are homes that will sit on the market a long time while others sell right away.
If you are buying, you need to know what it is you are shopping for and do your best to stay up-to-date on the newest listings so that you have a chance of getting ‘the one’ before someone else beats you to it. Having a buyer’s agent will certainly help with this process.
Sellers need to understand pricing and curb appeal. Homes that are priced right, and kept up-to-date, clean, and show-ready are more likely to sell quicker. Work with your REALTOR to know where your price should be and things you can do to make a quick sale.