Over the past weeks I have had the opportunity to work with First Time Home Buyers, folks retiring and moving to our great area and hometown neighbors just needing to make a change. The common question - "How's the market, is it a buyer's or seller's market?" So, what does that matter or how do you know?
Buyer's Real Estate Market
We hear the terms buyer's and seller's real estate market, just think supply and demand. A buyer's market is typically the best time for a buyer to purchase a home. Why? The amount (supply) of homes on the market is high compared to the number of buyer's (demand). This gives the buyer more homes to select from and a better chance of finding their dream home.
Typically, in a buyer's real estate market, sellers are more willing to negotiate. A buyer is more likely to negotiate a reduced price and get the seller to help pay closing costs.
Signs of a Buyer's Market
More than six months of home inventory on the market.
Inventory is high compared to previous months/years
Closed sales are lower compared to previous months/years
Longer Days on the Market (DOM)
Comparable sale prices are higher than active listing prices
Seller's Real Estate Market
If you are a home owner thinking if selling your home, this is the market for you. Why? Because there are more buyers(Demand) than available houses to buy.
In a Seller's real estate market, multiple offers and bidding wars are common. Which means, buyers are often willing to pay more than list price. Get your home staged and ready to show - be prepared to sell your home quickly.
Signs of a Seller's Market
Less than six months of home inventory on the market.
Inventory is low compared to previous months/years
Closed sales are higher compared to previous months/years
Less Days on the Market (DOM)
Comparable sale prices are lower than active listing prices
SOLD sign on property within a few days
Neutral Real Estate Market
In a neutral market, supply and demand is balanced. The number of homes on the market and number of interested buyers is equalized.
Signs of a Neutral Market
Three to six months of home inventory on the market
Inventory is balanced compared to previous months/years
Stabilized Closed Sales
Average Days on Market (DOM) 30 - 45
Comparable sale prices are close to active listing prices
Be watching for my upcoming blog to see our local market trends!
Pamela Sheehan, TNL#289126, Owner/Broker at Tennessee Mountain Real Estate in Maryville Tennessee