No matter where you live, the real estate market will either be a buyers' market or a sellers' market. It might even be slightly in between the two market conditions.
Most real estate agents consider a normal market to be one in which homes take an average of six months to sell. That means that in the MLS, there are at least six months of homes on hand to sell for the number of buyers in the market. If the number is higher than six months inventory, then the market is becoming a buyer's market. If it is less than six month inventory, then the market is swinging towards a seller's market.
Many formerly hot areas of the country are now becoming buyers' markets. In these areas, there are now too many homes on the market for the number of buyers. Homes are taking longer to sell and the prices are falling.
Some buyers believe that winter is always a buyers' market. It is true that there are fewer buyers out looking during the winter, there are usually fewer homes on the market as well. Seasonally conditions aside, a buyer's market is seen when buyers realize that their interest in a home is sought out.
When a buyer gains the control they will increase their demands o the sellers. They ask for things to be conveyed with the property, such as appliances and decor, that normally wouldn't be. They may ask for a home warranty at the seller's expense. Some demand the seller pay an increased portion of the closing costs. The contingencies can go on and on.
Not all sellers will lose out during a buyer's market. People who have owned their homes for a long time are able to sell at a profit, despite the buyer's market, due to the equity they have built up.
Sellers who must sell quickly will often take little or no profit from the sale of their homes, with a few taking a loss. These homeowners often have little or no equity built up in their homes.
One thing you can always depend on is that the market will eventually flip back to a seller's market. It is a never-ending cycle. If you find that you are a seller in a buyer's market, you could just hold on until the market turns back in your favor. But if you have equity in your home and have wisely maintained it, you may not find the buyer's market too unfavorable.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
No comments:
Post a Comment