It’s not always easy to determine the best time to buy or sell a home. Seasons change, the market fluctuates, and supply and demand change depending on the current state of the economy. If you are looking to make a real estate move soon, it’s important to determine whether it’s a buyer’s market or seller’s market. Not sure what these terms mean exactly? Here’s a quick rundown.
When supply exceeds demand for homes, a buyer’s market is created. Home inventory is high, but there is a shortage of interested buyers. This gives buyers more leverage, because the market is forced to respond when homes aren’t selling quickly. Home prices are typically lowered in order to make a sale and sellers are much more willing to negotiate to get their homes off of the market.
If you are interested in buying a home, this is the ideal time as there are fewer buyers to compete with. You can also take your time when searching for a home as there is a lower chance of an offer swooping in and taking your chances away.
A seller’s market, on the other hand, happens when demand exceeds supply. Sellers are at an advantage because there are fewer homes on the market, forcing buyers to compete with their offers. A buyer may end up spending more on a home than they initially planned just to secure a place to live over another bidder. It makes it much easier for sellers to raise their asking prices as well.
So how do you know which market is more prominent in your area in the present moment? Look at the homes currently available. If you see a large inventory, it’s likely that you’re in a buyer’s market. If there are not as many homes listed as you would normally see, it’s probably a seller’s market. Sellers will often drop prices in a buyer’s market, so be on the lookout for pricing history on homes and you can get an idea of where you may be able to land on an offer. Time on the market is another thing to pay attention to. If listings fly just as fast as they are posted, it’s a seller’s market. If they’ve been sitting for quite some time, it’s a buyer’s market.
It’s definitely best to wait for your type of market, whether as a buyer or seller, to jump in. Regardless of which side you’re on, an experienced real estate agent will get you the most bang for your buck. A BHHS Beazley, Realtor can keep you updated on market trends and let you know the best prices and times to buy or sell.