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Understanding market conditions

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.

Buyer's Market

Characteristics

  • High inventory of homes
  • Few buyers compared to availability
  • Homes usually stay on the market longer
  • Prices tend to drop

Implications

  • Buyers spend more time looking for a home
  • Buyers usually have more leverage

Seller's Market

The number of buyers wanting homes exceed the supply 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 tenion among buyers and sellers
  • More relaxed atmosphere
  • Reasonable number of homes to choose from