Whether you’re selling or buying a home, knowing your market can help you make informed decisions. There are many influencing factors in the housing market, such as interest rates, inflation, employment, new construction, immigration, and the health of local and national economies.
Buying & Selling in Different Markets
If you’re not sure what kind of market you’re in, the easiest way to tell is to check local inventory. Look at how many homes sold in a given month(s), then divide that number by the total number of homes still for sale at the end of the month(s). If that rate is higher than 20%, you’re in a seller’s market. A rate below 15% signals a buyer’s market. If you don’t have time to crunch numbers, a quick call to your realtor can determine the market with no math required!
- Ideal market for buyers.
- Occurs when the available homes for sale exceed the number of buyers seeking to purchase them.
- Commonly occurs in areas of struggling economy or stagnate job growth when there are many people moving away.
- Can also occur during the high-selling season when there are more houses on the market (summer months).
- Ideal market for sellers.
- Occurs when there are more buyers seeking to purchase homes than there are available homes on the market.
- May lead to multiple buyers interested in a single home, resulting in competing bids.
- Most commonly occurs in areas experiencing rapid job growth and economic stability, making it a desirable place to live.
- May also occur in the slow-selling season when there are fewer houses on the market (winter months).
- Interest rates are good and the number of buyers and sellers in the marketplace are fairly equalized.
An Expert Behind You
No one knows the market better than your local real estate agent. They’ll be able to come up with a strategy to get you the best deal, whether it’s a buyer’s or seller’s market. If you’re selling a home, your agent will know the right asking price, and if you’re buying, they’ll know what kind of offer you’ll need to stay competitive.
Contact An Agent to learn more getting the house you want, no matter the market.