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.

Buyers’ market
The supply of homes on the market exceeds demand.

Characteristics

High inventory of homes
Few buyers compared to availability
Homes on the market longer
Prices tend to drop

Implications

More time to look for a home
More negotiating leverage

Sellers’ market
The number of buyers wanting homes exceeds the supply of homes on the market.

Characteristics

Smaller inventory of homes
Many buyers
Homes sell quickly
Prices usually increase

Implications

May have to pay more
Must make decisions quickly
Conditional offers may be rejected

Balanced market 
The number of homes on the market is equal to the number of buyers.

Characteristics

Sellers accept reasonable offers
Homes sell within an acceptable time period
Prices generally stable

Implications

More relaxed atmosphere
Reasonable number of homes to choose from