The Difference Between a Buyers and Sellers Market
The housing market fluctuates according to the principle of supply and demand. When the supply is smaller than the demand, prices for the product rise. On the other hand, when the supply is higher than the demand the price shifts downward. Interest rates, the economy, and consumer confidence, also have an impact on the housing market. When the economy, consumer confidence, and interest rates are all favorable this can pull many buyers into the market which can shift the market into the seller's favor. If there are many more buyers to sellers in the market. On the flip side, if rates, the economy, and buyer confidence are unfavorable this could discourage home buyers from the market. In this case there could be more sellers than buyers in the market shifting the advantage to the buyers. Home buyers that are able to should of course buy a home when the housing market is more favorable towards them.
What Happens In A Buyers Market?
What Happens In A Sellers Market?
What Happens In A Buyers Market?
- Fewer buyers are in the market than sellers.
- Because of the few buyers compared to homes for sale the homes usually stay listed longer before a sale is made.
- Home sellers are getting less offers on their homes.
- The offers they receive come in lower than desired.
- Home sellers eventually have to drop their asking price to get their homes sold.
- The seller is generally trying to impress or satisfy the buyer so as to get the home sold to them.
What Happens In A Sellers Market?
- More buyers are in the market than sellers.
- Because the home buyers outnumber the amount of homes for sale the homes sell faster and thus have shorter listed time.
- Home sellers are getting multiple offers on their homes, creating a very competitive environment.
- The offers being made to sellers come in at, close to, or over the asking price.
- A buyer who really wants to buy an impressive home in this market must keep in mind that the seller is probably getting many offers and they need to impress the seller to sell it to them.