The real estate market is always changing, and it helps to understand how market conditions can affect your position as a buyer. Your agent can provide you with info on current conditions and explain their impact on you. There are three different types market on different time and area.
Buyers’ market
The supply of homes on the market exceeds demand.
Characteristics
- High inventory of homes
- Few buyers compared to availability
- Homes usually stay on the market longer
- Prices tend to drop
Implications
Sellers’ market
The number of buyers wanting homes exceeds the supply of homes on the market.
Characteristics
- smaller inventory of homes with many buyers.
- Homes sell quickly
- Prices usually increase
Implications
- Prices may be higher or perhaps climbing Must make decisions quickly
- Conditional offers may be rejected
Balanced market
The number of homes on the market is equal to the number of buyers.
Characteristics
- Demand equals supply
- Sellers accept reasonable offers
- Homes sell within an acceptable time period
- Prices generally stable
Implications
- less tension among buyers and sellers.
- More relaxed atmosphere
- Reasonable number of homes to choose from
