We promise these aren’t just fancy real estate terms, and we are here to break down what is involved with both a Buyer’s Market and a Seller’s Market. More specifically, it involves the general contrast between both inventory and demand that can span across several housing marketing, including premium and luxury markets, as well as starter and trade-up home markets – all of which are the more technical terms for these markets. In addition, Seller’s Markets and Buyer’s Markets can affect what is going to happen to overall home prices in certain areas as well.
To gain a more in-depth understanding of both the Buyer’s Market, the Seller’s Market, and which each means for you, keep reading!
The Buyer’s Market
The Buyer’s Market, also known as the Premium and Luxury Market, enables buyers to have more control of the overall price point. Typically, this is demonstrated more by a larger number of homes that are currently available on the market, while also listing a fewer number of sales that have taken place. Because of these factors, it’s suggested that the overall demand for residential-type properties is much slower for both the price point and the market itself.
The Seller’s Market
The Seller’s Market, also known as the Starter and Trade-Up Home Market, offers sellers the chance to have more control over the general price point itself. Generally, this will show that there are a fewer number of homes available on the market, while also listing a greater number of sales that have taken place. As a result of these factors, more competition will be expected to take place among buyers, which, in turn, will increase overall sales prices.
In terms of inventory for sale involving homes, here are the most recent numbers listed from March of 2018:
- Increase of 19.8% (Buyer’s Market)
- Increase of 2.4% (Buyer’s Market
Average days of homes available on the market have also been affected by both of these market types, as can be seen by the following numbers:
- 47 days (Buyer’s Market)
- 36 days (Seller’s Market)
In terms of overall price appreciation involving the sales of homes, the following numbers, dates, and different markets that have been affected include the following:
- Increase of 0.3% (Buyer’s Market; from February 2019)
- Decrease of 5.7% (Seller’s Market; from March 2018)
- Decrease of 3.7% (Buyer’s Market; from February 2019)
- Increase of 3.8% (Buyer’s Market; from March 2018)
Thank you for reading our real estate and homeowner’s blog. We are Weichert Realtors – Barton Harris & Co. and we’re happy to have helped you learn more about home buying markets.