Good time to buy? Good time to sell?
If you're thinking about buying or selling a home today, no doubt you're asking one of these two questions.
While it's important to note that real estate prices and market conditions are influenced by a variety of factors including location, type, condition, interest rates, unemployment rates, population growth, and affordability - one of the most used predictors is the simple law of supply and demand.
Here are 3 types of real estate markets that use the principles of supply and demand to predict success for buyers or sellers.
1. A Buyer's Market
A buyer's market is when there are more homes for sale (supply) than there are buyers (demand) for them. In this type of market, buyers, have the advantage with more inventory to choose from, prices remain stable or sometimes soften with sellers more open to negotiating.
2. A Seller's Market
A seller's market is when there are more buyers (demand) than there are current homes for sale (supply). In a strong seller's market, sellers are in the driver's seat. Prices strengthen or increase; homes sell quicker and, in some cases, sellers get multiple offers.
3. A Balanced Market
A balanced market is when there are an equal number of buyers and sellers in the market. Homes sell in a reasonable time frame and prices remain stable. This is a healthy real estate market, one that is good for both buyers and sellers. For more information on what market type we're in right now, let's connect virtually!
