A BALANCING ACT
“Buyers market.” “Sellers market.” What does it all mean when you find yourself ready to buy or sell a home?
The basic concept behind a “buyers market” is that there are more houses or residential properties for sale in your community than there are buyers qualified to make a purchase. This creates increased competition among the sellers for those fewer buyers, and can put the buyers in the “driver’s seat” when it comes to negotiation.
It logically follows that a “sellers market” happens when there are more prospective buyers than there are homes for sale. Now it is the buyers who must compete against each other for available properties, often to the benefit of those who are selling.
Many markets across the country have enjoyed a sellers market for the last few years. This is largely due to the fact that interest rates have been so low that many more buyers applied, and qualified for, financing than in previous years. Now interest rates are slowly creeping up, resulting in most markets balancing out toward the middle ground.
Regardless of market conditions, many people don’t have much choice when it comes to when they want or need to buy or sell a home. Life dictates these decisions for us. Either way, consult a professional for advice in order to get the most benefit from your real estate experience.