Buyer’s Market vs. Seller’s Market

Most people hear these terms often in real estate but do you know what they really mean and how they are determined?

I will help to explain; What they mean? Whose at an advantage at which time? Which is happening in this area?

This information is from the Realtors Association of Hamilton-Burlington website

Buyer’s Market

In a buyer’s market, there are more homes for sale than there are buyers.  This could be because of things like high unemployment, fear of interest rate increases or other factors which make people think twice about purchasing a home for the first time or moving up into a larger home.

The advantage buyers have in a buyers’ market is that they can typically take their time and look at all of their options before buying.  Buyers also have more options because sellers are more anxious to sell.  Overall, home prices may go down in a buyer’s market.

Seller’s Market

In a seller’s market, there are less homes for sale to a larger pool of buyers.  The factors at work could be sustained low interest rates, high employment rate, legislative changes which make it easier to purchase a property – events and conditions that make buyers think it would be a good time to buy a big ticket item like a home.

The advantage goes to the seller in a seller’s market – typically home prices will rise as buyers are quick to make an offer to secure the property; sometimes buyers will compete for a property, driving the price above expectations.

 

seller’s market has existed in the REALTORS® Association of Hamilton-Burlington market area for the last year or so.   The Sales-to-Listing ratio continues to be in the lower end of a seller’s market, but there has been movement to suggest that there may be a return to a more balanced market in 2013.

To read the full article from RAHB click the link below

“Seller’s Market”, “Buyer’s Market” – What Do They Mean?

 In any given month or period, the number of sales is compared to the number of listings taken.   If the result is 55% or greater – there are 55 sales for every 100 listings – it is considered a seller’s market.

If the result is 35% or lower – that is, 35 sales for every 100 listings – it is considered a buyer’s market.

Anything in between is considered a balanced market.