Knowing the difference between a buyer’s market and a seller’s market is a key factor in whether individuals are trying to buy or sell a home. It will affect the number of available properties and the cost. Trends can be local or nationwide.

A switch from a seller’s market to a buyer’s market can occur fairly quickly and affect the timing of selling or buying a home. The real estate market operates on supply and demand. External elements can also affect the market, such as the COVID-19 pandemic, threats of war with other countries, geo-political conflicts, and investor interest.

Buyer’s Market

A buyer’s market will have an extensive inventory of available properties, slow sales, and already low or declining home prices. Interest rates are also typically low.

Seller’s Market

A seller’s market is one in which there’s a shortage of available homes, sales are quick, and home prices are rising or are already high. Interest rates on mortgages may also be high.

Sales vs Inventory

Peruse trusted real estate websites. A large inventory of available properties indicates a buyer’s market and a good time to shop for a dream home. Few home listings and elevated prices means it’s a good time to sell and individuals can receive much higher prices for their property.

To get an idea of the market, divide the number of homes on the market by the number of sales in the last month. A number of 7 or above is a seller’s market. A number of 5 or below means it’s a buyer’s market.

Compare Prices

Individuals can also check the cost of homes in the range and area they desire. People seeking to purchase a home may also see sellers reducing the prices they’re asking.

Length of Time Offered

Look at how long the home has been on the market. Homes remain on the market longer in a buyer’s market.

Trend Reports

Looking at reports on trends in the area where individuals want to buy or sell is a good indicator of trending prices, either up or down.

flat fee real estate agency Boca Raton

Located in Boca Raton Florida Camino Real Realty is Boca Raton’s Premier Flat Fee Real Estate Agency. Camino Real Realty has been providing Flat Fee Real Estate Services to Palm Beach residents for Years! For more information on how we can help you sell your house while saving thousands in the process contact Tamara Aristy today 954-213-5310