As a seller, this is not the ideal market for you, In simple terms a buyers market is when the inventory available (homes for sale) surpasses the demand for said inventory (potential buyers). When this happens, properties tend to sit on the market for longer and typically negotiate more. What does this mean for you? Pricing your property correctly in this type of market is absolutely crucial! For our buyer friends! This is the best time to buy, it does not mean you’ll feel as though you got the best deal, or paid the cheapest the market has ever seen, it really just means as a buyer, the market conditions will be in your favour. You will have time to visit, visit a second time, think about it, make an offer and negotiate! Take advantage if you find yourself in this market as it is definitely the best market for you!
2. Balanced Market
Just as the title makes it seem, a balanced market is where the demand and supply are at par. Most of the time, real estate is either in a buyers market, or a sellers market. The Balanced Market is only around temporarily in between markets (usually for a couple of months at most – maximum 1 year). In this market we tend to see an equal part of homes for sale with an equal part demand (potential buyers). Sounds ideal right? This market tends to treat both buyers and sellers well, Although again, it may not feel this way for you, whether you are on the buying or the selling side. A famous saying in real estate is “the buyer always feels as if they paid too much, and the seller always feels like they could have gotten more”. This saying truly does resonate in a balanced market because it is simply the most equal type of environment. As a buyer you can expect to pay about 5-10k more or less than surrounding homes, and as a seller, you can expect the same.
3. Sellers Market
Ah yes, the mecca of real estate markets for sellers. Think post-covid real estate, the glory days. A sellers market is exactly that. When supply is short and demand is at an all time high we have the ideal mix for sellers. In this type of market, inventory does not last long on the market. We tend to see trends such as bidding wars and under-pricing strategies. So can we price your home at whatever we want to? NO! – Just because the demand for your home is high, it does not mean people will be willing to pay ridiculous prices. Buyers… buckle up because the urgency to buy a home in this type of market is real, you don’t have time to visit twice, sometimes almost you don’t have time to visit at all! it is high paced, emotional and definitely not an easy road to navigate, the positive side? This type of market is usually fueled by low interest rates which is what causes the real estate market to increase in activity. So although you may be paying more for your home, your monthly payments may be the lowest you’ll see them in a long time!