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What is the difference between a Buyer’s market and a Seller’s market?
A Buyer’s market occurs when the supply of available homes exceeds the demand for those homes. In other words, there are more homes for sale than buyers for those homes. Buyers are not in a hurry to buy because they are many homes to choose from and the homes are taking a relatively long time to sell. Generally speaking, if the inventory of homes is 7 months or more, it’s considered a Buyer’s market… supply exceeds demand.
A Seller’s market occurs when the demand for homes exceeds the supply of available homes. In other words, there are not enough homes for sale to satisfy the demand by Buyers. In a Seller’s market, homeowners can typically demand a higher price for their home and Buyers must act fast or risk losing the home they really want. Generally speaking, if the inventory is 4 months or less, it’s considered a Seller’s market… demand exceeds supply.
If the inventory of available homes is between 4 and 7 months, it’s considered a Level market with no advantage to Buyers or Sellers.
A very important point to note is that the inventory of homes varies by price range and location, even within the same general market area. In fact, within the same neighborhood, it’s possible to be in both a Buyer’s and Seller’s market.
Whether buying or selling, it’s important to understand market conditions so you know what to offer when buying or how to price your home when selling. It’s not enough to gauge the market for your global metro or regional area.
You MUST uncover the accurate status based on the exact location and price range where you’re considering buying or selling. Remember, price and location are major factors in gauging the true condition of the housing market.
For a personalized report, send us your information or contact a member of our team. We look forward to hearing from you.