For years, sellers have had the upper hand in the housing market. With so few homes for sale and so many people who wanted to purchase them, buyers faced tough competition just to get an offer accepted. But now, inventory is rising, and things are starting to shift in many areas.
So, is the market finally balancing out? And does that mean buyers will have it a bit easier now? Here’s what you need to know.
What Makes it a Buyer’s Market or a Seller’s Market?
It all comes down to how many homes are for sale in an area compared to how many buyers want to buy there. That’s what ultimately determines who has the most leverage.
- A Seller’s Market is when there are more buyers than homes available, so sellers hold the power. This leads to rising prices, multiple offers, and homes selling quickly – often above the asking price – because there isn’t enough to go around.
- A Buyer’s Market is when there are more homes than buyers. In this case, the tables turn. Sellers may have to offer concessions and incentives, or negotiate more to get a deal done. That’s because buyers have more choices and can take their time making decisions.
You can see this play out over time using data from the National Association of Realtors in the graph below:
Where the Market Stands Now
While it’s still a seller’s market in many places, buyers in certain locations have more leverage than they have had in years. And that’s thanks to how much inventory has grown lately.
Here’ss a look at some of the strongest seller’s markets and buyer’s markets today, according to that research:
Do you know how to adjust your plans based on who’s got the most negotiating power? Because I do.
Clever strategies can make buying in a seller’s market easier – and vice versa. And that’s exactly why you need to hire a pro. I know the market like the back of my hand. I am familiar with what the supply and demand balance looks like and how to help my clients get a deal done either way. So, as long as you have a skilled pro by your side, it doesn’t really matter if your town is on the list or not. With my expertise, you will be able to plan ahead and buy (or sell) no matter what the market looks like.