Buying – Understanding market conditions
The real estate market is always changing, and it helps to understand how market conditions can affect your position as a buyer. Your agent can provide you with info on current conditions and explain their impact on you.
The supply of homes on the market exceeds demand.
High inventory of homes
Few buyers compared to availability
Homes on the market longer
Prices tend to drop
More time to look for a home
More negotiating leverage
The number of buyers wanting homes exceeds the supply of homes on the market.
Smaller inventory of homes
Homes sell quickly
Prices usually increase
May have to pay more
Must make decisions quickly
Conditional offers may be rejected
The number of homes on the market is equal to the number of buyers.
Sellers accept reasonable offers
Homes sell within an acceptable time period
Prices generally stable
More relaxed atmosphere
Reasonable number of homes to choose from