How To Know If It's A Buyer's Or Seller's Market?
Questions Of The Day: How To Know If It’s ABuyer’s Or Seller’s Market
Are you planning on buying a home any time soon? In this newvideo, Corcoran Connect founder and top broker JeanineCorcoran shares valuable insights on how to know if it’s abuyer’s or seller’s market.
A buyer’s market is a situation wherein the supply exceedsdemand. This means that buyers have the advantage when it comes tonegotiating price. In real estate, this also means that houses tendto sit on the market longer. And when they do get sold, they tendto sell for less. This is partly due to sellers competing in aprice war to attract buyers.
On the other hand, a seller’s market is when people arecompeting to buy real estate. In this type of real estate market,homes usually sell for more than the list price because of the highdemand.
Jeanine’s Real Estate Advice On Assessing TheHousing Market
According to Jeanine, every market is different and dynamic.What is happening within your community could be in stark contrastto the housing situation in another part of the state.
One way that professionals gauge the status of the real estatemarket is by looking at the inventory. In a balanced market, therewould be five to six months of inventory. This means that, ifnobody else in Central Florida sold their homes, it would take fiveto six months to sell all properties on sale.
If the inventory is over six months’ worth, it is abuyers’ market. Keep in mind, though, that this is notsomething that changes overnight. You can’t have a surplus ofhomes for sale today and then have everything sold out the nextday.
Right now, we’re at a low inventory phase. This means itis a seller’s market. Homes on sale are few and far inbetween, which means prices are higher than what you would normallypay.
Another way to understand the market is to know your activelistings. The best way to do so is to contact your realtor. Realestate agents have access to real-time information, which they getfrom local boards and MLS (Multiple Listing Services).
What’s Happening In Central Florida RightNow?
According to one report, home sales in Orlando “spiked” 25%year-on-year in October. This was due to “tight inventory and(hesitant) buyers returning to the market.” The median homeprice was at $290,000, 10% higher than in 2019 but down more than$5,000 from September. Total inventory was down 20% versus the sameperiod in the previous year. And with record-low lending rates,many potential buyers are keen to make their first purchase.
These factors indicate a seller’s market. And this trendis expected to continue in the coming months.
According to the National Association of Realtors® (NAR)Chief Economist Lawrence Yun, the housing market surge will likelycontinue as we begin a new year. He predicts an increase in homeprices, low mortgage rates, and a surge in sales of new homes.
He also noted that even with pandemic-related foreclosures, themarket will still lack inventory because of how quickly it will beabsorbed. Therefore, there will be no significant reduction in homeprices.
Whether It’s Home Buying Tips Or Home SellingTips, We’ve Got You.
With or without a global health crisis, nobody can predict howthe market will behave in the next weeks or months. But while itcannot be predicted, it can be tracked. And that’s whatrealtors are great at.
Jeanine’s team can provide real-time real estate data onyour Central Florida community. They can share information that youwouldn’t otherwise find online with a simple Google search.They can help you go over statistics, and most important of all,make sense of it based on what you need.
If you are a prospective home buyer, check out Corcoran Connectis official YouTube channel for more expert tips on how to buy ahouse. We can also help you if you’re on the other endof the spectrum and trying to sell real estate.
Let’s talk real estate! Call us now.