Market Conditions

Pay attention to market conditions – they will have a definite impact on your position as a buyer. The table below lists the influences that different conditions may have on you. Impact and expenses may vary, depending on your area.

Market Conditions

Characteristics

Implications

Buyer’s Market: The supply of the homes on the market exceeds the demad.
  • High inventory of homes.
  • Few buyers compared to availability.
  • Homes are on the market longer.
  • Prices tend to drop.
  • More time to look for a home.
  • More negotiating leverage.
Seller’s Market: There are more buyers looking to buy a home than there are homes on the market.
  • Smaller inventory of homes.
  • Many buyers.
  • Homes sell quickly.
  • Price usually increase.
  • May have to pay more and make decisions quickly.
  • Conditional offers may be rejected.
Balanced Market: The number of homes on the market is equal to the number of buyers.
  • Sellers accept reasonable offers.
  • Homes sell within an acceptable time period.
  • Prices are generally stable.
  • More relaxed atmosphere.
  • Reasonable number of homes to choose from.