Housing starts jumped a whopping 11.8% in November 2021. If you’re like a lot of Americans, you might be thinking about buying or selling your home.
Making the decision to sell can be a tough one. For many, it comes down to knowing whether you’re dealing with a buyer’s market or a seller’s market. The condition of the real estate market makes all the difference between a profitable sale and a bad deal.
But how do you tell what kind of market you’re facing? Keep reading. We’ll tell you how to analyze the property market so you can make the best real estate decision for you.
A Buyer’s Market vs a Seller’s Market
A buyer’s market is one that is more favorable to buying than selling. This means that there are more properties available than there are interested buyers, so prices are low.
In a buyer’s market, you’ll have:
- More real estate selection
- More competitive prices
- Longer time to consider your purchase
A seller’s market is the opposite: there are more prospective buyers than there are sellers. This means that the demand outpaces the supply. If you’re selling in this environment, you’ll have more interest in your property and higher offers.
Signs of a Buyer’s Market
In a buyer’s market, prices are lower. Check your local listings to look at prices in your zip code, then compare them to prices in other areas.
Another sign of a buyer’s market is that listings stay available for a long time. Watch your real estate market and see how long the listings stay up. If they last for days, weeks, and even months, you’re looking at a buyer’s market.
You’ll also see price cuts in a buyer’s market, so if listings do stay up for a long time, keep an eye on the prices. You should see some properties having their prices reduced over time.
Signs of a Seller’s Market
A seller’s market has high purchasing competition. If you’re lucky enough to be selling in this kind of environment, you’ll see high competing offers. Offering prices will be high, and you may even have buyers bidding on your real estate.
In a seller’s market, real estate listings will turn over quickly. They may disappear from the market days or even hours after they are posted. If you’re buying a home in a seller’s market, it can be hard to even book a viewing because listings get snapped up so quickly.
Buyer’s or Seller’s Market? Now You Know
The housing market changes all the time. With these tips, though, you’ll be able to figure out whether it’s a buyer’s or seller’s market for you. Now, you can decide when the right time is to buy, sell, or just stay where you are.
If you’re looking into a housing change, there are a lot of financial considerations to think about. If you want more great financial and legal tips, keep reading our blog!