You will often hear the media talk about buyer’s markets and seller’s markets, which begs the question – what do these terms mean?
In the real estate world, a buyers market describes a situation where buyers have more choice. There are more listings available than in a seller’s market, meaning that at any one time a buyer will have a number of properties available that may suit their needs. This creates an environment where sellers (and their hired real estate professional) have to work hard to secure buyers, as opposed to a situation where a large pool of buyers have to compete over very few properties (a seller’s market).
Buyer’s market = more conditional offers.
Because there is more choice, meaning less competition for each individual property, buyers are in a stronger negotiating position and are able to place offers that are subject to various conditions. In a seller’s market, on the other hand, there is so much competition that buyers are often forced to make their offers unconditional to stand much chance of having their bid accepted. In short, a buyer’s market makes it easier for people to make offers. In a buyer’s market, sales take longer.
Buyers want to see everything they could potentially buy before making their choice. This means the time on market for each property increases. There is simply more to look at before you make an offer!
Good properties stand out.
There is a saying in real estate that attractive properties sell well in any market. And while the total number of offers might decrease, it’s still common to see strong competition for attractive homes, even in a down market. The flip side is that properties that are hard to sell can take a lot longer to move, with buyers in a situation where they are not forced to buy whatever the market gives them. They can take their time, knowing that other properties will come up for sale soon.
Buyers with a house to sell can finally move.