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
