A buyer’s market and a seller’s market are terms used to describe the balance of power between buyers and sellers in a particular market. As home prices fluctuate, how do you know when to sell your home? Or to have it ready for potential buyers? How do you know when to buy a home at the right time for you and your family? Let’s start by simplifying these common real estate terms: Buyer’s Market and Seller’s Market. 

Buyer’s Market

When we refer to a buyer’s market, we’re talking about an abundance of properties for sale with relatively few buyers. This means that buyers have more options to choose from and have more negotiating power when it comes to price and other terms. Buyers may also have the upper hand in terms of timing, as they may be able to take their time to find the right property without feeling rushed.

Seller’s Market

On the other hand, a seller’s market is characterized by a shortage of properties for sale and a high demand from buyers. This gives sellers more control over the price and terms of a sale, as there are more buyers competing for a limited number of properties. Sellers may also be able to sell their properties more quickly in a seller’s market environment. 

Are we in a buyer’s or seller’s market?

One of the key indicators of whether a market is a buyer’s or seller’s market is the inventory-to-sales ratio. A high inventory-to-sales ratio indicates a buyer’s market, while a low inventory-to-sales ratio indicates a seller’s market.

It’s important to note that real estate markets can change rapidly and what is considered a buyer’s market one day can turn into a seller’s market the next. It’s always a good idea to keep an eye on the local market conditions. But how? How can we keep up?

I recommend consulting with a real estate professional like myself. I can help you understand the state of the market as it changes. Whether you are buying or selling a home, you want to trust your real estate agent to help you understand the market. 

Please reach out to contact me via phone or form. I’d be happy to help you with your next real estate move!