Perhaps you are in the market to buy a new home or maybe you need to sell your current home. Whether you identify as a buyer or seller, you need to understand how supply and demand work in tandem to create three types of real estate markets. Doing so will help you make a savvy investment decision. Let’s take a look!
Buyer’s Real Estate Market – Definition and What to Expect:
A buyer’s market refers to a real estate market where the housing supply exceeds demands. In this type of market, the buyer has the advantage because they are able to negotiate a low price more aggressively.
- Get more house for your money with lower purchase prices
- Buy a home you wouldn’t necessarily be able to afford in different market conditions
- More options; more inventory means buyers have more to choose from
- Reduced prices; sellers get anxious to sell and start reducing their prices to appeal to more buyers
Seller’s Real Estate Market – Definition and What to Expect:
A seller’s market is the opposite of a buyer’s market. In a seller’s market, there are typically more buyers than there are homes for sale. Since the supply is lower than demand, buyers are typically at a bit of a disadvantage.
- Getting more money for your home at closing
- Potential bidding wars between interested buyers
- A faster sales timeline; move more quickly from listed to sold”
Transitional Real Estate Market – Definition and What to Expect:
A transitional real estate market refers to the interim period between a buyer’s or seller’s market. This period of time is generally pretty neutral, meaning it’s neither good nor bad for buyers and sellers.
What to expect in a transitional market:
- Sellers can “play the market,” and wait for the perfect offer; it may take longer than it would in a hot seller’s market, but there’s enough demand to allow sellers to wait for an offer at a good price
- Buyers will have a moderate amount of inventory to choose from; there won’t be as many houses to choose from as there would be a buyer’s market, but the inventory will be better than it would be in a seller’s market
Whether you are looking to sell your home or need to buy a new home, understanding the three most common types of real estate markets will help you to make an informed decision on when to pursue your real estate goals.
Get more seller advice:
Interested in buying or selling?
We've improved the traditional real estate model with modern technology to cut costs, not quality.Get started today