ARTICLES

Understanding Market Conditions

The real estate market is forever changing. It helps to understand how market conditions can affect your position as a buyer, or seller...

We would love to sit down to discuss in more detail the current real estate market conditions that exist in our area at the present time, and how they will affect you.

For now, though -- let's discuss a few characteristics of the market you might encounter:

Buyer's Market: The supply of homes on the market exceeds demand. A high inventory of homes, few buyers compared to availability. Homes tend to sit on the market longer, and prices tend to drop. This set of circumstances offers more time to look for a home, and perhaps more negotiating leverage!

Seller's Market: The number of buyers wanting homes exceeds the supply of number of homes on the market. There tends to be a smaller inventory of homes, with more buyers. Homes tend to sell quickly & prices usually increase! As a buyer, you may end up paying more, and will have to make quick decisions -- especially if you have a conditional offer -- which may end up even being rejected!

Balanced Market: The number of homes on the market is equal to the demand or number of buyers. Demand equals supply. Sellers accept reasonable offers. Homes tend to sell within an acceptable time period. Prices generally seem to stabilize. This is a more relaxed time for both buyers & sellers. There are a reasonable number of homes on the market to choose from.

Market conditions can be tricky at times, especially at different times of the year. Yes, even the direction of the wind can bring changes in the market!

If you, or someone you know is interested in discussing market conditions in further detail -- we are here to help! Call our office anytime to speak with us at 519-733-1028.

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