Is this a good time to sell? Is this a good time to buy? It’s always a good time–as long as you’re prepared!
It is important to note, real estate prices and market conditions are influenced by many factors including location, interest rates, consumer confidence, unemployment rates, population growth and the most common predictor is supply and demand.
There are three types of market conditions that utilize the principles of supply and demand:
1. A BUYER’S MARKET
A buyer’s market is when there are more homes for sale (supply) than there are buyers (demand). In this type of market, buyers have the advantage with more inventory to choose from. Prices remain stable or sometimes soften with sellers 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, 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. Homes sell in a reasonable timeframe and prices are stable. This is a healthy real estate market, one that is good for both buyers and sellers.