In this video I will talk about the 3 different types
of markets and the impact they can have on home values.
We are regularly asked, “How’s the real estate market?” In fact, it’s a question virtually everyone asks when they first find out I’m a real estate agent!
The answer will depend, of course, on whether you are actively looking to sell or buy, have investment properties, or are simply curious and not really concerned about making a move in the near future.
3 Types of Markets
There are 3 types of markets in the world of real estate. Each has its own set of positives and negatives depending on whether you are buying, selling, or both.
- Seller’s market: Not enough homes on the market to meet current buyer demand.
- Buyer’s market: A surplus of homes available and not enough buyer demand for those homes.
- Balanced market: The buyer demand matches the number of homes available. Homes may be on the market for an average of about 6 months.
On the market for 6 months?
Six months sounds like forever, right? That’s partly because we just came out of a strong seller’s market (2021-2022) where buyers were competing for homes and there simply weren’t enough to satisfy the demand.
Now as we are experiencing a shift from seller’s market to what could become a buyer’s market (at some point), homes are staying on the market a bit longer.
So, how’s the market?
How you view the market truly does depend on your circumstances. If you are someone thinking of buying a house, this is actually a shift that will serve as helpful. If you are selling your home, the market is still good, but it’s just not as fast paced as this past year. Finding the right price point to meet your timeline can be a bit more complicated.
Education is key
I have learned over the years that regardless of the market, education is key when it comes to helping people buy or sell. That’s why when meeting with a client, we have current local data to share. It’s current data and possible upcoming changes in the market that matter most and will ultimately help with creating a solid and successful game plan.
Real estate is local
Remember, real estate is very localized. What is happening in one region of the country can be totally different from another – even from city to city within the same state!