Understanding how the housing market works is essential for both buyers and sellers. Not only does it put you in the best position to negotiate and make smart financial decisions, but it also helps to ease the stress that naturally occurs when making such a large purchase. This advice is enough more crucial in our current shifting market.
Read along to find out how to spot a buyer’s market and how it can affect you if you plan on buying or selling a property.
A buyer’s market happens when more homes are on the market than interested clients. In other words, house supply outweighs home buyers' demand. These conditions give home buyers leverage over sellers because sellers will go the extra mile to guarantee their properties attract clients’ attention.
A sudden increase in growth in houses for sale in a specific area or a drop in interested buyers could cause a buyer’s market. Both situations can also happen at the same time.
During a buyer’s market, real estate prices will drop, and houses will remain on the market longer. This results in sellers competing against each other to attract potential clients. Usually, sellers lower their asking prices to get ahead in the market. They’d also be willing to negotiate offers so potential buyers won’t buy from a different seller.
The housing market changes over time, and you need to know which market cycle you’re operating in to take advantage of it. The signs are listed below:
Increased Inventory: More properties are listed for sale, increasing the available house supply.
Lower prices: Listings may go through several price cuts after the property has been on the market for a long time.
Incentives: Sellers might offer enticing incentives to secure the property's sale, such as flexible closing costs or credit to cover renovations.
Houses taking longer to sell: Houses take longer to sell in a buyer’s market, and the average for the market as a whole will start to grow.
Relisted houses: With the more extended sale periods, sellers may relist the same home after it’s been in the market for a long time.
On the other hand, a sign of a seller’s market is that fewer homes are for sale, but many buyers want to purchase a house.
When a real estate market starts moving from the sellers having the leverage to a more balanced market or the home buyers having control, many different market signs will help tell if the transition is happening. Stay tuned for the buyer’s market!
If you have more questions about the real estate market and want to know if it’s the right time to buy, call or message our mortgage experts for advice.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 101770
Personal NMLS: 49242
12411 SE 2nd circle
Vancouver, WA 98684
NW Funding Group- Bill Black strives to ensure that its services are accessible to people with disabilities. NW Funding Group- Bill Black has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
NW Funding Group- Bill Black makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows billcblack.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
NW Funding Group- Bill Black accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
NW Funding Group- Bill Black continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on NW Funding Group- Bill Black website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on NW Funding Group- Bill Black website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org