The real estate market is always changing. It helps to understand how market conditions can affect your position as a buyer.
Market Conditions: 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.
Implications: More time to look for a home. More negotiating leverage.
Market Conditions: The number of buyers wanting homes exceeds the supply or number of homes on the market.
Characteristics: Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase.
Implications: May have to pay more. Make decisions quickly. Conditional offers may be rejected.
Market Conditions: The number of homes on the market is equal to the demand or number of buyers.
Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices generally stable.
Implications: More relaxed atmosphere. Reasonable number of homes to choose from.