The terms “buyer’s market” and “seller’s market” are tossed around frequently, and if you’ve been tuned into conversations about real estate, you’ve probably heard them before. But what do these terms really mean, and what should you know about the market if you’re looking to buy or sell in the near future?
In this blog we’ll break down what a buyer’s market and seller’s market look like, the key differences between them, and how you can make the most of your real estate journey, regardless of what’s happening in the market.
Why Does the Market Fluctuate?
In most markets (including ours), the supply of available homes is always changing – as is the amount of people who are looking to buy. As a result, market conditions will always be shifting too. Small trends can develop over time or major external factors could flip things upside down overnight. In short, real estate is never standing still.
It’s also important to understand that market trends can change or differ based on even the tiniest of details. For instance, while a town may be experiencing buyer-favouring conditions from a bird’s eye view, one specific neighbourhood within the area could look more like a seller’s market if there is a particularly high demand for homes in that community.
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What Makes a Buyer’s Market?
In simple terms, a buyer’s market occurs when there is an abundance of homes available but fewer people who are actively house hunting. In other words, when the supply of homes outweighs the demand. When a market looks like this, it generally puts buyers in a favourable position.
Buyer’s Market Perks
Negotiation Power: With sellers competing for attention, buyers have the opportunity to negotiate for lower prices or include specific conditions that protect their interests.
More Selection: Buyers have more available properties to choose from, allowing them to be more selective in finding a great home.
Relaxed Shopping: Instead of competing with other house hunters, buyers don’t usually need to make rushed decisions about placing an offer.
How Can Sellers Find Success in a Buyer’s Market?
Regardless of what the market looks like, one of the most important details in a home sale is the listing price. However, it’s especially critical when sellers have competition on their hands.
Choosing a great price is all about balance. If you list your property at a higher price in hopes of negotiating down, you may limit interest from potential buyers. However, listing too low could lead to selling yourself short.
Looking to buy a home in Durham Region or the Kawartha Lakes? Check out these other pages from our site for helpful info and insights!
What Makes a Seller’s Market?
On the flip side of the coin, a seller’s market occurs when there are lots of buyers, but fewer homes. As there’s stronger demand than there is supply, markets like these typically tilt the scales in favour of sellers.
Advantages for Sellers
Higher Prices: Sellers can often command higher prices for their homes due to increased demand.
Faster Sales: Homes tend to sell more quickly in a seller’s market, reducing the time a property spends on the market.
Negotiation Leverage: Sellers may have the upper hand in negotiations, with buyers eager to secure a property in a competitive market.
How Can Buyers Find Success in a Seller’s Market?
While finding and buying a great home during a seller’s market is totally possible, it’s not always easy. When facing competitive conditions, buyers will need to be well-prepared for the market, with a clear understanding of their budget and priorities.
One easy way to be market-ready is by getting pre-approved for a mortgage. With a pre-approval in your back pocket, you’ll have a better idea of your budget, and enjoy greater leverage when placing an offer.
Working With Puckrin & Latreille
Whether you’re looking to buy or sell, working with an experienced locally-knowledgeable real estate agent is super important in finding success – whatever the market looks like.
Our team, Puckrin & Latreille, has bought and sold every type of home throughout every kind of market condition since the ‘70s. We have the experience, insights, and connections to make your real estate dreams a reality.
Placing you at the centre of your real estate journey, it’s our goal to make the process as smooth and stress-free as possible.
Looking for a local real estate team that can help you reach your goals in any market? We’re here for you. Call 905-985-7300 to reach our team or click here to send us an email.
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