There are more people looking to sell homes than people looking to buy houses. There are more people looking to buy homes than people looking to sell houses. A seller's market arises when demand exceeds supply. In other words, there are a lot of interested buyers, but real estate inventory is low.
Because there are fewer homes available, sellers have an advantage. The most significant difference between the buyer's market and the seller's market is who has the power: the buyer or the seller. As you may have guessed, the power dynamic tilts toward the buyer in a buyer's market and toward the seller in a seller's market. Why? Because in a buyer's market, there's more home inventory and lower prices, empowering the buyer.
On the contrary, seller's markets allow sellers to ask for more money and encourage bidding wars, giving them power. Sellers are much more willing and more likely to lower their prices in the buyer's market to prevent them from losing a sale. You can determine which market applies to your area by monitoring the ads to see how long they stay in the local market. Maximum Real Estate exposure is a marketing site designed to give Massachusetts home sellers a dominant online presence.
When you see that comparable homes and recent sales show that they sold above the sale price, this should mean a seller's market. In a real estate market that benefits buyers, people expect to have a lot of housing options and get good deals. Although the best time to buy real estate is in a buyer's market, that doesn't mean that finding a home in a seller's market is out of the question. A buyer's market means that sellers must work harder to sell their homes because there is more supply than demand.
Before you start looking for a new home or selling your current property, it's essential to understand market conditions. However, regardless of the conditions in your area, hiring a real estate agent is the best way to navigate the real estate market. In addition, homes are likely to stay on the market longer, putting pressure on sellers to make concessions during the negotiation process. The key to getting the best possible value for your money is to understand what's happening in the local real estate market, whether you're a buyer or a seller.
If there are a lot of homes on the market in the local area, it's more likely that this is a buyer's market. With these constant changes in the real estate market, it can be difficult to determine the best time to buy or sell a home. A market absorption rate greater than 20% indicates a seller's market, while rates lower than 15% point to a buyer's market. This increased competition often makes people willing to spend more than they normally would on a home, allowing sellers to increase their costs at or above the original sale price with little or no rejection from buyers.