The truth is, real estate is always in flux. Home prices, interest rates, and market trends evolve daily, and understanding these ebbs and flows can help make you a smarter (not to mention richer) investor in the long run.
Not sure where to start? Begin right here. This guide breaks down everything you need to know about the real estate market, the state of housing, and the trends you need to be aware of as you choose your next investment.
A buyer’s market is one in which there are more properties for sale than there are buyers. This means home buyers have the upper hand and enjoy more choices in properties, as well as more negotiating power when making a purchase. If you’re buying a home, this is the ideal market to do it in.
In a buyer’s market:
- Homes take longer to sell.
- Buyers have more listings to choose from.
- Buyers have less competition.
- Buyers can make lower offers and negotiate more on sales price and closing costs.
- Sellers may have to do more to market their properties.
- Sellers may need to lower their price points.
A seller’s market is the opposite. In a seller’s market, there are fewer listings than there are buyers, and buyers face stiff competition among themselves. Because of this, they may encounter bidding wars or their home search might take longer than expected. If you’re looking to sell a home, a seller’s market is the best time to do it.