What is a Buyer’s Market?
A buyer’s market is when the available houses for sale are greater than how many people are looking to buy houses. If you’re looking to buy a new home, doing so during a buyer’s market is the way to go. Prices tend to drop in order for seller’s to compete with each other.
If you are trying to sell your house during a buyer’s market it’s likely that it will stay on the market longer before you’re able to find someone to buy it. This is why the prices drop because sellers have to lower them to try to get buyers.
What Causes a Buyer’s Market?
A buyer’s market is generally caused by the economy. If the economy drops, then fewer people are looking to buy homes. It can also be caused by home developers coming in and building a large number of homes. This increases the supply without the demand going up, thereby creating a buyer’s market.
Signs of a Buyer’s Market
- Homes stay on the market for a long period of time
- Not a lot of offers coming in
- Home prices drop
- Sellers are competing instead of buyers
Wondering a seller’s market is? Click here to find out!