You’ve heard the term buyers market before but maybe you aren’t entirely sure what it means. Today, we’re going to look at What Happens in a Buyers Market.
A buyer’s market occurs when the demand for real estate is low relative to the supply. During buyer’s market periods, there is more inventory on the market than usual and houses move more slowly because of it. This means that sellers might not get as much money as they want for their homes.
But this could be a good thing for buyers who can negotiate better prices, such as getting a seller to pay closing costs or other buyer-favorable conditions. Buyer demand is low in a buyer’s market – meaning that fewer people are buying houses at this time and new home construction slows down dramatically. Rising housing prices may be slowed down by the increase of surplus houses.
This is because more and more people are selling their homes, leading to an oversupply of houses on the market which will eventually lead to price drops. When there are too many houses on the market, this gives buyers a large number of choices.
Since they have so much choice, then it makes sense that buyers would be able to negotiate better terms. It also means there is less pressure from time constraints as well as more competition between sellers for potential deals.
In addition, buyer’s markets can result in lower housing prices and interest rates, both of which give buyers an advantage when home hunting. Do your research so you’re prepared for all of the potential buyer’s market conditions.
As always, if you’re selling your house in a buyer’s market, be patient and don’t get discouraged if it takes a little longer than expected for someone to buy.