| Market Conditions |
Characteristics |
Implications |
Buyer's Market:
The supply of homes on the market exceeds demand. |
High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop. |
More time to look for a home. More negotiating leverage. |
Seller's Market:
The number of buyers wanting homes exceeds the supply or number of homes on the market. |
Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase. |
May have to pay more. Make decisions quickly. Conditional offers may be rejected. |
Balanced Market:
The number of homes on the market is equal to the demand or number of buyers. |
Demand equals supply. Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices generally stable. |
More relaxed atmosphere. Reasonable number of homes to choose from. |
