Posted by Sandra Tessier on 5/23/2017

For homebuyers, there may be nothing better than searching for a house in a buyer's market. Typically, a buyer's market is defined by several key characteristics, including:

1. Shortage of Homebuyers

In a seller's market, competition among homebuyers remains fierce. Therefore, a homebuyer may be forced to compete against several homebuyers to secure his or her dream home.

Comparatively, a buyer's market features a shortage of homebuyers, resulting in less competition for quality residences. As a homebuyer, this is ideal because it means that you may be able to improve your chances of securing a great house at a price that matches your budget.

If you're a homebuyer in a buyer's market, the ball is in your court. As such, you should take your time exploring the housing market and find a residence that suits your budget and lifestyle perfectly. By doing so, you likely will be able to secure your dream home without having to worry about the stress of competing against other homebuyers or exceeding your budget.

2. Abundance of Home Sellers

A buyer's market may be a tough time for home sellers. At this time, there may be many homes available, and home sellers might need to reduce the prices of their residences to stir up interest.

Meanwhile, an abundance of home sellers ensures there is a large supply of homes available. This may make it easier for a homebuyer to check out many terrific homes and find one at a below-average price.

Although a buyer's market presents many opportunities for homebuyers, it is important to avoid taking shortcuts. Instead, a homebuyer should devote ample time and resources to assess homes that meet his or her criteria and respond accordingly.

Furthermore, homebuyers should avoid the temptation to submit a lowball offer on a residence even in a buyer's market. If you submit an offer that falls below a home seller's expectations, you may miss out on the chance to acquire your dream home altogether.

3. Steady Supply of Real Estate Agents

When it comes to shopping for a home in a buyer's market, working with a real estate agent is a great idea. A real estate agent can provide you with plenty of information about first-rate residences that you can enjoy for years to come. Plus, a real estate professional may be able to offer insights into a home that you may struggle to obtain elsewhere, making it simple for you to purchase a top-notch home at a bargain price.

Perhaps best of all, your real estate agent can offer recommendations throughout the homebuying journey. He or she also will be able to respond to any concerns or questions you have, ensuring you can remain calm, cool and collected as you transition from homebuyer to homeowner.

Employ a real estate agent to guide you along the homebuying journey in a buyer's or seller's market. With a real estate professional at your side, you can navigate the challenges of the real estate market and secure your dream house without delay.




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Posted by Sandra Tessier on 4/29/2014

Is it a seller's market? A buyer's market? Depends on the day and which media outlet you happen to be listening to. One thing is sure the market is changing. Here are some ways to know what kind of market it is: These are the signs of a buyer's market High inventory or more than six months of inventory currently on the market. Sale prices are higher than active listing prices. Lower closed sale numbers. Declining median sales prices. Higher DOM or days on the market. Here are some signs of a seller's market Low inventory or less than six months of inventory currently on the market. Sale prices are lower than active listing prices. Higher closed sale numbers. Increasing median sales prices. Lower DOM or days on the market. These are signs of a balanced market Three to six months of inventory is currently on the market. Sale prices are similar to active listing prices. Stable sales numbers. Flat median sales prices. Days active on the market are approximately 30 to 45 days. If you want to know how to figure out the months of inventory there is a simple way to do that. Take the total number of active listings and the total number of sold or closed transactions on the market last month. Divide the number of total listings by the number of total sales, which results in the number of months of inventory remaining. Then you can determine what type of market it is.