What Do People Mean By 'Buyers Market' And ‘Sellers Market'

The last time you spoke with a realtor one of the phrases ‘buyers market’ or ‘sellers market’ were assuredly spoken at least a couple of times. And if you’re like me you probably wondered exactly what that meant…

Or you could just assume your realtor is trying to “sell” you in one way or another, which is probably true as well. Still, no matter how the conversation went you need to figure out exactly what a ‘buyers market’ is and exactly what a ‘sellers market’ is before you make any big decisions with regards to your home.

If you’ve been confused of the true meaning of ‘buyers market’ and ‘sellers market’ in the past, then read on. The real estate market is prone to fluctuation and you need to educate yourself in order to make the most out of your investment.

Here is what people mean when they refer to ‘buyers market’ and ‘sellers market’:

What is a ‘buyers market’?

In layman’s terms, a ‘buyers market’ is when the housing market favors buyers. However, there is a bit more to it than that. A ‘buyers market’ tends to occur when houses take more than six months to sell. This is due to the fact that many real estate agents use a six-month sale as the base line for determining the housing market in your area.

A true ‘buyers market’ occurs when there are a number of homes available on the market and this begins to drive prices lower than normal. A ‘buyers market’ can be defined by geographic region, price range, or a number of other parameters. If you are in the market to buy a home and it’s a ‘buyers market’ then you may have gotten lucky!

What is a ‘sellers market’?

A ‘sellers market’ is simply the opposite of a ‘buyers market’. In a ‘sellers market’ you will find a high demand with little supply. This occurs when there are not enough properties for sale to satisfy the number of buyers in the market.

During a ‘sellers market’, the sellers can and do begin to raise their prices because the buyers begin to pay more for the homes in the area.

The Results

The effects of a ‘buyers market’ or a ‘sellers market’ can be felt by all in the area and often is. Values of all homes in an area will fluctuate if a true ‘buyers market’ or ‘sellers market’ arises. Home prices can rise and fall quickly.

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