It seems like the market is finally slowing down. According to data from Realtor.com, listings are up, homes are sitting on the market longer, and price growth is decelerating. Could it mean the seller’s market is on its way out and a buyer’s market is nearing? What would that even mean for consumers?
Let’s take a look at what buyer’s markets look like vs. seller’s markets — and how they influence your options.
Seller’s markets
A seller’s market is one in which sellers have the upper hand. We’re currently in one of these (in most cities) and have been for a while. It’s a time marked by rising prices, high demand, low inventory, and stiff competition (i.e., bidding wars).
When it’s a seller’s market, buyers have less negotiating power. They may have to up their bid, waive contingencies, or take other measures to win a home. It’s also just more challenging to buy a house in general.
Buyer’s markets
A buyer’s market is the opposite of the above. Under these conditions, homebuyers wield the power. There are lots of homes to choose from and not too many buyers to compete with. This makes sellers more willing to negotiate, and buyers may be able to come in with lower offers or ask for certain concessions or repairs.
Few, if any, cities are seeing a buyer’s market these days, but it won’t stay that way forever. If listings continue to increase, it could turn things around and make buying a house a little bit easier for consumers.
Housing conditions are local
At the end of the day, real estate is a local industry, and conditions vary widely from one city (even neighborhood) to the next. To get a good grasp on where your area is trending — or the area you’re hoping to buy in, you’ll want to talk to an experienced local real estate agent.
They can talk you through recent trends in listings, prices, bidding wars, and more, as well as prepare you for a more successful home purchase or sale.
Once you’re ready to pull the trigger on your house hunt, make sure to get preapproved for your mortgage loan. If you are in a seller’s market (which is most of the country), a preapproval can give sellers confidence in your offer and help you stand out from other bidders. Get in touch with an Embrace Home Loans office in your area to learn more.
