Market Types

Market Conditions

The Market has a large impact on how well a property will do when coming to the open market. The Real Estate Market can be described as a Seller’s Market, Buyer Market, or Balanced Market. Each of these types will have an impact on what to expect when selling a property.

• Seller’s Market – This is when there are more buyers than properties to purchase. In a seller’s market homes can go into multiple offers and have fewer days on market. A seller’s market creates more competition for buyers as they have fewer properties to choose from.

• Buyer’s Market –  This is when there is lots of inventory of homes for sale and not as many people to buy them. When in a buyers market homes will have more days on market and sellers should be more open to negotiating a lower price. In this type of market, buyers are typically looking to get a great deal.

• Balanced Market – This market has a good almost equal amount of buyers purchasing and sellers looking to move. Typically in this market, both buyers and sellers are able to make a deal work.

These market conditions are important when selling a home as it impacts home prices. Sellers want to get as much for their property as they can so therefore a seller’s market is ideal! However, if it is not the market is not in your favour it is important to have the right strategy in place. As always the market condition is able to dictate if a buyer or seller has stronger negotiating power.