The real estate market is always changing, and it helps to understand how market conditions can affect your position as a buyer. Your agent can provide you with info on current conditions and explain their impact on you.
The supply of homes on the market exceeds demand.
Characteristics
- High inventory of homes
- Few buyers compared to availability
- Homes on the market longer
- Prices tend to drop
- More time to look for a home
- More negotiating leverage
The number of buyers wanting homes exceeds the supply of homes on the market.
Characteristics
- Smaller inventory of homes
- Many buyers
- Homes sell quickly
- Prices usually increase
- May have to pay more
- Must make decisions quickly
- Conditional offers may be rejected
The number of homes on the market is equal to the number of buyers.
Characteristics
- Sellers accept reasonable offers
- Homes sell within an acceptable time period
- Prices generally stable
- More relaxed atmosphere
- Reasonable number of homes to choose from