Buyer’s Market v. Seller’s Market

Many first time home buyers can feel like they are wandering in the dark. Other than “location, location, location”, they do not have a good amount of real estate knowledge to go off of. So when someone says “it’s a buyer's/seller's market”, just what do they mean by that. In short, a buyer's market benefits the buyer, and a seller's market benefits the seller. So how can you know if your desired area is in a buyer’s market or seller's market? Look for these identifiers:

Buyer’s Market

• Typically there is more supply than demand----high inventory for that area. >6 months
• Takes longer for homes to sell.
• Listings stay up longer.
• Prices are falling.
• High negotiating power.
• You’ll see much more advertisements in a buyer’s market.
• Low closing percentage.
  
  

Seller’s Market

• Typically more demand than supply---low inventory <6 months.
• Homes sell quickly.
• Listings are not up for very long.
• Prices are rising.
• Low negotiating power.
• Less advertisements in a seller’s market.
• High closing percentage.

Balanced Market

• Not typically the norm, inventory is at 6 months.

If you are a first time home buyer, it is important to do your homework and research not only on the market itself, but on agents and realtors as well. The more educated you are in the market and business, the better your chances are of being content upon closing.