"Determining whether it is a buyer’s or seller’s marketplace can sometimes be a bit daunting, especially if you are a first-time buyer or seller in the real estate arena.
There are many factors to consider, and these can be anything from fluctuations in the economy to whether a given neighbourhood is suddenly considered ‘hot.’
More often than not it can simply come down to overall supply and demand in the market place. As a rule of thumb, when there are more homes for sale than there are buyers, house prices drop and it becomes a buyer’s market. Alternately, when there are fewer houses on the market than there are buyers, house prices climb and it becomes a seller’s market. The market is considered ‘balanced’ when the numbers of buyers and sellers in the market have equalized and inventory seems ‘normal’ in comparison to months in previous years.
In a seller’s market, properties move quickly, usually within a few days of being listed. There can be multiple offers and sellers may receive more than the original asking price.
In the case, where the market changes and property values go up, the asking price can be significantly affected. For the buyer, this can limit your choices in a house and you may have to move quickly with your decision to put in an offer.
In a buyer’s market, the supply of homes usually exceeds the market demand and your home may take longer to sell. For the house hunter, this can mean significant savings, since sellers may have to reduce their original asking price. Just as when the market is in a balanced state, conditional offers can be common in a buyer’s market.
You, the buyer, can expect to pay less for more house and have the option to take longer to make your decision. In the early stages of shopping for a home, it can be helpful to have your REALTOR® provide you with market statistics specific to the area and type of home that interests you." [Read more]
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