Buyer’s Market vs Seller’s Market Pt. 1 Introduction
Greetings everyone, this post will be a brief introduction in terms of a Buyer’s or Seller’s Market. I will have subsequent posts going in more detail in terms of what one can expect in each market from the perspective of a buyer as well a seller.
When thinking about the real estate market it’s important to remember that the market is based on the law of supply and demand, which in turn affects the price of homes in the area you’re looking to sell or the area you’re looking to make a purchase. So that brings us to the distinction between a buyer’s market and a seller’s market.
When your local real estate market is said to be a Buyer’s Market it means that the number of homes (supply) far outnumbers the amount of people looking to buy a home (demand). Due to this oversupply homes on the market tend to stay on the market longer. Another effect of this is that buyers have leverage when it comes to negotiating price due to the number of options available. Conversely when your local real estate market is said to be a Seller’s Market it means that the number of people looking for a home (demand) far outnumbers the amount of homes for sale (supply). In a Seller’s Market the seller has leverage when it comes to negotiating price, bidding wars can occur, and homes tend to stay on the market for a relatively short period of time.
I hope that this first part of Buyer’s Market vs Seller’s Market was a helpful introduction to understanding the difference between the two. I will be going in-depth into each market to discuss some of the nuances of each. If you have any topics you would like for me to cover just send me a message or comment below and I’ll be sure to create a post about it. Thank you for your time.