Economists and real estate agents often describe the national real estate market as either a buyer’s market or a seller’s market. While economic conditions — especially those related to housing — impact local markets, too, it’s more important for most people to know whether their region or city is in a buyer’s or seller’s market.
Essentially, a buyer’s market is one in which there are more homes for sale than buyers. That means it’s easier for buyers to find the home of their choice, and there’s a greater possibility that buyers can negotiate with sellers during a transaction. In this case, the buyer has a leg up.
In a seller’s market, the opposite is true. There will be more buyers than homes for sale, so sellers have more control over the transaction. Home buyers may have to compete for a property in a bidding war in a seller’s market. Buyers will have a lower chance of getting a home they want for a lower price, negotiating for repairs, or receiving closing cost assistance from sellers.
The housing market can be affected by numerous dynamics, such as mortgage rates, new home construction, the job market, demographics that influence the number of new household formations, and whether there’s a recession. To determine whether your area is a buyer’s or seller’s market, ask a local real estate agent or follow the housing market trends in your neighborhood or town.
For more on this story, please visit yahoo.com.