You may have heard the terms “buyers market” and “sellers market” used in the media or by real estate agents and wonder what they mean and how it effects you.
In a buyers market the one doing the buying has the power because they have the ability to make a purchase at a time when there are more people selling than there are people buying. In this type of housing market the buyer is in the drivers seat. The buyer may have multiple properties to choose from and can make a deal on purchase price because the seller is one of many looking to sell property with only a few people looking to buy.
A sellers market is one where the roles are reversed and there are more buyers looking to buy than properties being sold. In this case multiple offers are common and it is the sellers who have more control over the purchase price and terms of the sale since more then one buyer is interested in their property.
When properties are plentiful prices tend to drop and houses can sit on the market for months. When there are few properties for sale prices tend to increase and houses go into escrow more quickly.
You may have heard we have been in a buyers market for the past few years but in the past 6 months or so more buyers have entered the market and the number of properties have decreased which is indicates we are entering a sellers market.
What does this mean to you?
It is still a good time to buy and interest rates are still low but as a buyer you may need to adjust your offer strategy since it is unlikely you will be the only one writing an offer on a property. Our team has successful represented buyers in this market and would be happy to work with you to get your offer accepted.
For sellers if you have been thinking about selling your home it is a good time since you have something people want. Our agents would be happy to give you a property evaluation and a listing presentation to discuss how your property value has been effected by this changing market and if you are interested in listing your home for sale we can walk you through the process.