Market Conditions

What are Market Conditions?
Buying or selling property in today’s fluctuating and competitive market place take s industry knowledge. It also takes dedication, commitment and the ability to achieve the goals set before you. Listing your home above market value will make your neighbours house look more attractive to buyers and at the very least you will risk a lack of potential purchasers viewing your home. I explain the impact of today’s fast paced market environment and the impact it has on your position.

Balanced market
The number of homes on the market is equal to the number of buyers (supply equals) demand). In this market, prices are stable and homes sell within a reasonable time frame. There are few multiple offer situations as buyers have a satisfactory inventory of homes for their selection.

Buyer’s market
This occurs when the supply of homes exceeds the number of buyers. When the supply is greater than demand the prices tend to decrease and the number of days a home is listed becomes longer in duration. Not only does it take longer for the majority of homes to find suitable buyers but sellers have less negotiation power in terms of the selling price. As a buyer you can take advantage of these market conditions when making an offer.

Seller’s market
This occurs when the number of buyers exceeds the inventory supply. When the demand is greater than the supply market prices increase and homes sell quicker. As a seller you will probably have better negotiation power and usually can realize a higher selling price. Buyers could find they are competing for the same property as others. Buyers will also notice that timing is essential when deciding on whether to place an offer.

 TREB Market Conditions