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If you have been around the real estate world, you have probably heard the term ‘ real estate market types’ and wondered about the different types.
Sellers Market
A Sellers Market means that the inventory of homes on the market is smaller than the amount of buyers that are looking to purchase a home. This can put sellers in “control” as they receive multiple offers, creating competition between buyers. This can make home prices start to increase.
Buyers Market
In a Buyers Market, the inventory of houses on the market is higher than the amount of buyers looking to purchase. This can put the buyer in “control” as they are able to pick and choose which properties they want to offer on. Buyers can also include more conditions in their offers to protect themselves.
Balanced Market
A balanced market happens when the inventory of homes for sale matches the amount of buyers that are looking to make a purchase. When the market is balanced, sellers and buyers are equals, with neither side facing harsher market conditions than the other.
Many factors can contribute to real estate market types. Lender and employment rates, and construction, are just some examples that can have an effect on the market conditions.
Check out another blog post here What is Curb Appeal?
