THE NEED TO UNDERSTAND REAL ESTATE MARKET CONDITIONS
The real estate market is in constant flux, not only as a whole but in particular areas as well. Knowing what is going on in the overall and local real estate markets will help you understand how these conditions can affect the sale of your home. We've designed the following comparison to help give you an overview of the three significant market positions. When you meet with your sales representative, ask about the current state of the market.
Home Seller's Market:
The number of potential buyers exceeds the supply of homes on the market.
Characteristics: There is a smaller inventory of homes with many buyers. Homes sell quickly. Prices usually increase. Often the competition for properties is intense and can result in multiple offers.
Implications: Prices may be higher or perhaps climbing. Buying decisions must be made quickly. Conditional offers may be rejected.
Balanced Market For Home Buyers and Sellers:
The number of homes on the market is roughly equal to the demand.
Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.
Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.
Home Buyer's Market:
The inventory of properties for sale on the market outnumber the buyers.
Characteristics: There is a larger inventory of homes on the market with fewer buyers willing to purchase.
Implications: Home prices may drop somewhat, properties may remain on the market for longer periods and some sellers may reduce their price or terminate their listing to sell at a later date in a market more favourable to sellers.