One thing that is important for everyone in the real estate industry to know and understand is that it is constantly changing. Sometimes, the market favors sellers and other times, it favors the buyers. Having an understanding of where the market sits can help you either make the most possible on your house or as a buyer, it can help you pay the least amount of money for the house. It is important to understand the difference between a buyer’s market and a seller’s market. Deb Maher Realtor is here to talk about the difference between the two.

What is a Seller’s Market?

If there are more people that are looking for homes than there are homes to buy, this is known as a seller’s market. In this type of market, there is more than likely going to be multiple buyers that are interested in your property. In a seller’s market, there are a few things that are usually true:
– Large Population Growth: Whenever there is an area that is all of a sudden booming, there are usually more people than there are homes available.
– Job Market Growth: Sometimes, there will be a large company that moves into town and with it, there will be a lot of people looking for homes.
– Decreased Home Building: In a seller’s market, the number of homes being built is always on the low end. The amount of new construction will always have a large impact on the supply of homes being sold.

What is the Meaning of Buyer’s Market?

Whenever there is a large inventory of homes on the market and not nearly as many buyers, this is known as a buyer’s market. There will be several homes to choose from and buyers will be able to negotiate the price more easily with sellers, because they are usually more anxious to sell their homes. The longer a home sits on the market, the more likely sellers are to settle for a lower price. Here are some things that are usually true in a buyer’s market:
– Increased Construction: Just because builders are building new homes, that doesn’t mean that there are buyers that are interested in buying them. When there is a large increase in new homes being built, the market starts to swing toward al buyer’s market.
– Economic Factors: If there are many people losing their jobs, it can have an impact on the market as well. More people are generally putting their homes on the market.
– Demographic Shifts: If there are more young buyers that are holding off on purchasing a home, it can mean that there are more homes that buyers and it produces a buyer’s market.

Residential House Property Sales & Rentals in Gatesville, Valley Mills, Robinson, Lacy Lakeview, Bellmead, Hewitt, Woodway, Greater Waco, TX | North & Central Texas Real Estate

If you’re interested in buying or selling a home, let Deb Maher Realtor help you do it. We help our sellers get top dollar for their property while helping buyers get the best possible price. Call us today!