Numerous factors affect the real estate market. There may be more buyers than sellers. There could be more sellers than buyers. Interest rates, employment statistics and pricing all factor in to the market. The supply of resale and new homes are also considerations.
There are three types of markets that will be present when you sell your home these markets directly affect the how to market of your home. Understanding which market you are selling in can make a difference to your bottom line.
Buyers' Market
Description: A situation in which many things of the same kind are for sale, prices are low, and buyers have an advantage over sellers. It's an economic situation in which goods or shares are plentiful and buyers can keep prices down.
Characteristics: Many homes available for sale. Fewer buyers than homes. Homes remain on the market longer. Stable prices. Prices may also drop.
Impact: Less panic in buying. Buyers shop longer for homes. Upon negotiation, they often have more leverage.
Sellers' Market
Description: A seller's market is a market condition characterized by a shortage of goods available for sale, resulting in pricing power for the seller. A seller's market is a term commonly applied to the real estate market when low supply meets high demand.
Characteristics: Few homes on the market. Many buyers. Lots of multiple offers. Homes are sold quickly and often for more than list price. Prices often rise. Buyers have FOMO (Fear Of Missing Out).
Impact: Home prices are higher. Homes prices often rise. Buyers purchase quickly, and tend not to shop as much. Multiple offers are common. Sellers may prefer offers with no-conditions.
Balanced Market
Description: A balanced market is a term used to describe whether or not supply is meeting demand in the real estate housing market. If a region's housing market is balanced it means that there is enough demand from buyers to equal the supply from sellers.
Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.
Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from