You often hear the question “is it a buyers market or sellers market right now” when it comes to real estate. The truth is that the answer can often change every year or even several times throughout the year. To know what type of market is available in real estate when you’re buying or selling a home, it’s important to understand the difference between the two.
A buyer’s market is when the properties that are available for sale are greater than the demand. That is, there are more homes for sale than there are people to buy those homes. If you’re in the market to purchase a new home, the buyer’s market is the best time to do that. You could potentially end up with a great home that has all the features you’re looking for at a much lower rate than if real estate was in a seller’s market.
As expected, this means that if you’re selling your home in a buyer’s market, it may sit on the market longer than you anticipated because of how many properties are available. This could cause you to have to lower your listing price or make other concessions such as buyer’s assist to get a buyer to purchase your home.
A seller’s market is when those looking for a house outweigh the properties that are available. This means that more people are looking to buy homes than there are homes available. This tends to lead to multiple interested buyers in a property that could result in a bidding war. When it’s a seller’s market, it’s the best opportunity to sell your home. You could potentially stand to get a sale price that’s higher than what you listed the property for.
Conversely, buyer’s should be aware that a seller has the advantage in this kind of market. If you’re currently renting a unit and can’t afford to keep up with a bidding war, you could stay renting. That’s why a seller’s market is also sometimes referred to as a renter’s market.
At present, trends are showing that 2018 is going to be a seller’s market. This should bring out motivated buyer’s and provide sellers with the opportunity to at least reach their bottom line on their property or potentially increase the sale price beyond the listing price.