Buyer’s Market vs. Seller’s Market

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What does a Buyer’s Market and Seller’s Market Mean?  How is it defined and how does it effect a buyer and a seller? 

I’m sure you are familiar with the law of Supply and Demand…and in Real Estate much of the law holds true. 

supply and demand

 

The real estate market depends on quite a few things and in a Buyer’s Market a few common things happen:

1. The demand is lower

2.Inventory is higher

3. Listings sit longer

4. Fewer Offers

5. Lower Offers

IN A SELLER’S MARKET YOU WILL TYPICALLY SEE JUST THE OPPOSITE of 1 thru 5. 

There is also A STABLE MARKET, where the month’s supply is between 4 & 5 months.  Currently the mulitple listing service has reported the 1st Quarter stats for Johnson County and it was definitely a Seller’s Market with only a 2.8 months supply of homes. 

The type of market can vary from city to city and even neighborhood to neighborhood, so always go over statistics with a knowledgeable agent before going with the ‘AVERAGE’ reported for an entire county or specific city.

Understanding market conditions is key to determining if NOW is the right time to move and how to price a home to Sell.

 

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