What are Market Conditions?
≡ The real estate market is always changing. It helps to understand
how market conditions can affect your position as a buyer.
≡ Your agent can provide you with
current real estate market conditions and explain their impact.
Buyer's Market
The supply of homes exceeds the number of buyers (supply is greater than
demand). In this market prices tend to drop and the homes stay on the
market longer. Thus your home may take longer to sell and you will have
less negotiating power in terms of the selling price. Fortunately you will
be in the driver's seat when making an offer on your next home.
Seller's Market
The number of buyers exceeds the number of homes on the market (demand
greater than supply). In this market prices are increasing and homes sell
quickly. As a seller you will probably have more negotiating power and obtain
a higher selling price for your property. Unfortunately you will be on the
other side of the fence when purchasing your next home.
Balanced Market
The number of homes on the market is equal to the number of buyers
(supply equals demand). In this market, prices are stable and homes sell
within a reasonable period of time. It is a calm atmosphere with buyers
having a satisfactory number of homes from which to choose.
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