The real estate market is always changing. Varying economic indicators dictate which stage your local market is experiencing. It helps to understand how market conditions can affect your position as a seller. What are these market conditions? Well, we're sure you've heard some common phrases tossed around. Has anyone taken the time to explain them? Not everyone is familiar with real estate jargon, and that's okay. We're here to help you understand E-V-E-R-Y-T-H-I-N-G! That's our job.
What is a Balanced Market?
The number of homes is equal to the demand or number of the buyers. Typically, this type of market shows that demand is equal to supply, homes sell within an acceptable time period and prices are generally stable. What does this mean for you? You may experience a more relaxed atmosphere with buyers having a reasonable number of homes to view and choose from.
What is a Seller's Market?
The number of buyers wanting to purchase homes exceeds the supply of available homes on the market. Typically, this type of market has a smaller inventory of homes, many buyers, homes sell quickly and prices usually increase; there may even be bidding wars. What does this mean for you? You may experience more negotiating leverage and obtain a higher selling price for your property.
What is a Buyer's Market?
A buyer's market occurs when the supply of homes on the market exceeds the demand. Typically, there is a high inventory of homes, few buyers compared to availability, homes stay on the market longer and prices tend to drop over time. What does this mean for you? It may take longer to sell your home with less negotiating leverage in terms of selling price.
These are the three types of market conditions that can exist. It is normal and healthy for them to change from season to season. When you experience a type of market that is not suited well to your position (in this case, as seller that would be a buyer's market), your Realtor will take on the heavy lifting. They will market harder and longer, and prospect buyers avidly. When experiencing a type of market that IS suited well to your position, like a seller's market, buyers will be coming to you. You and your Realtor won't have to work as hard when marketing and prospecting.
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