Thursday, May 7, 2015
Seller vs. Buyer Market
What is the difference between a "buyer's market" and a "seller's market"?
The buyer's market develops when there is an excess supply of real estate. The number of excess units in that particular market allows a potential Buyer to shop among anxious owner-Sellers to obtain better prices and terms.
Buyers may have incentives such as low interest rates and they may feel that prices are going to rise. This drives the Buyer to want to purchase real estate. A buyer's market is typically when there is more than seven months of inventory.
The seller's market develops when there is an excess demand for real estate. There are numerous Buyers and not an adequate number of homes to be sold. This allows Sellers to demand higher prices from Buyers. A seller's market is typically when there is less than five months of inventory.
A balanced market is considered to be one that has 5-7 months of inventory. That means that the average house will be on the market 5-7 months before an offer is received.
In the last thirty days, the average days on market for a listed property priced under $450,000 in the city of Seattle was 30 days, the median being just 7 days on market. This is very heavily weighted towards a seller's market, in case anyone had any doubt.
If you are a seller, or thinking about selling, now is a good time! For a free online evaluation of your home's value in today's market, please email me privately at HomeLandInvestment@gmail.com or call our 24/7 recorded hotline at 888-621-4999.