WHAT IS A SELLERS MARKET?

You may often here real estate terms like “buyer’s market” and “seller’s market”, but what do they actually mean?

Here is a very simple way to understand the different types of real estate markets and how it may impact your home search/home selling process.

Remember the children’s game musical chairs? Perfect! Let us keep that game in mind to analyze the different market types.

Seller’s Market

There are 5 chairs and 8 participants playing. In this case, there are not enough chairs (homes) to meet the demand in the market. Therefore, it is likely that the 8 participants (buyers) will be more aggressive (pay over the odds) to secure a chair (home).

Buyer’s Market

There are 8 chairs and 5 participants playing. In this case, the opposite is true. Here, participants (buyers) have more than enough options to choose from. The need for them to pay over the odds to secure a home doesn’t exist and they have a lot more room to negotiate deals in their favor.

Balanced Market

There are 5 chairs and 5 people playing. This type of market creates a win/win for buyers and sellers. There will likely be a give and take on both the buyers and the sellers part in order to make a deal work.

Current Market (2021-2022)

There are 3 chairs and 300 buyers.

This can be classified as a seller’s market on steroids. Inventory is historically low and the demand is historically high. If marketed and priced correctly, seller’s stand to see their property sell quickly for top dollar.

Want to learn more? Feel free to contact me at anytime to find out what your home is worth in the current market or to discuss how to successfully navigate the home buying process in a competitive market.