Seller’s Market? Buyer’s Market? Balanced Market?

Let’s break it down!

A seller's market happens when there is a limited supply of homes with a substantial number of buyers looking to buy a home. Here are some things for buyers to consider when purchasing in a seller's market:

• Sellers are more selective
• Inflation rates increase property values 
• It's more challenging to get an offer accepted
• Competition is high with competing contingency free offers
  • For example, waving inspection or appraisal 
• Plan for a long term investment 
  • Own property for at least five to seven years to build equity

A buyer’s market happens when there are a substantial amount of homes on the market with minimal buyers. Below are things for sellers to consider when selling in a buyers market:

• Buyers are more selective
• Inflation rates differentiate the value of a home
• Generally longer days on the market
• Little to no competing offers
  • Reduces the likelihood of receiving multiple offers
• Can be a shorter term investment

The balanced market is the ideal market because it has equal opportunity for the sellers and buyers. This market occurs when there is an equal amount of homes for sale and buyers. Below are things to consider when in a balanced market:

• Neutral conditions 
• Equal supply and demand 
• Property prices are steady 
• Follow all recommended guidelines 
• Less pressure
  • No urgency for a buyer to rush into buying a property
  • No urgency for a seller to rush into selling their property 

Now with all this information, what kind of market are we in? Since 2020 we have been in a sellers market which equates to a substantial number of buyers with a limited supply of properties. The sellers have more control over the market, so the offers are more competitive/higher, sellers are receiving multiple offers, and buyers are waving inspections to get their offer accepted.

Have any questions? Interested in a career in real estate?

Contact YOUR real estate alliance today!

Phone: (920) 209-0863

Email: lori@loridibbs.com

Location: 516 E. Wisconsin Ave. Suite C, Appleton, WI 54911