Understanding the Market
Knowing the condition of the market is the first step in successfully selling your home. Understanding whether your neighborhood is in a seller's market or a buyer's market is important to get an idea of how active home buyers will be. Some of this information can be found online but it is usually not specific to your particular neighborhood.
So what are the market conditions you may encounter? What is a seller’s market, a buyer’s market and balanced market?
Seller’s Market: Home sellers have an advantage over buyers. This usually happens when there is a shortage of homes for sale and interest rates are low. In this situation, there are a lot of buyers competing over few listings which sometimes results in bidding wars. Home prices will likely rise during a seller’s market.
Balanced Market: Home supply and demand are more or less in balance. Buyers are buying-up the housing inventory and there is little to no surplus of listings on the market. In this market, activity is healthy and home prices remain somewhat stable.
Buyer’s Market: You guessed it, the buyer has an advantage over the seller. This happens when there are more homes for sale than buyers to buy them. Homes tend to stay on market for longer and sellers become more anxious to sell their homes. In this situation, buyers may be able to get a home at a favorable price and home prices tend to drop.
This is just a basic overview of market conditions you may encounter. For a much more thorough explanation and for a comprehensive market analysis, contact me.