Understanding the Difference Between a Buyers and a Sellers Market
When learning about real estate, one of the most foundational things that you can learn about is how to properly understand the difference between buyers and a seller’s market. When learning about real estate, it is crucial to remember that the property market is constantly changing. At times the real estate market is favorable to buyers, while at other times it is favorable to sellers. While this might seem overwhelming at first, working with an experienced real estate agent can help you through the purchase of a home, regardless of what kind of market is being favored at the time. But in the meantime, here is a breakdown of what the difference is between a buyers and a seller’s market, and how that can impact that real estate game.
What Does It Mean to Be in a Buyers Market?
Put simply, if you decide to buy a home and the property market is considered to be a “buyers market” you will be provided with a wide variety of choices e as the supply of homes on the market exceeds the number of buyers. This often leads to buyers being able to negotiate with sellers and scoring a great deal.
Some signs that it is a buyers market include:
-Houses taking longer to sell (sometimes on the market for more than 6 months)
-Fewer sales are taking place overall
-There is a noticeable difference in the size and detail on real estate ads.
-More houses are on the market at one time than have been in months and years past.
What Does It Mean to Be in a Sellers Market?
To be blunt, a seller’s market is the exact opposite of a buyer’s market. It means that the real estate market benefits the seller as opposed to those looking to buy. In this kind of market, there is a noticeably lower amount of properties. This can lead to an inflation in the price of homes.
Signs that you are in a Seller’s Market Include:
-The average sale prices are increasing quite noticeably
-Homes are staying on the market less time than in previous months and years
-Real estate ads are shrinking in size and providing less detail
It is important to remember that real estate markets are constantly in a fluid state. No market will stay the way that it is today forever. At its core, people are what drive the real estate market. So, a city that has recently experienced a surge or employment opportunities is more likely going to become a seller’s market because of the sudden desire for people to move there. However, a city that is facing a dramatic increase in property taxes, and not gaining any substantial employment or educational opportunities will likely have more houses available as there is less of a desire to relocate to that area.