Everything you need to know about buyer's & seller's market in real estate

Have you ever wondered when the best time is to buy or sell a home? While certain seasons may be busier than others, the fluctuations within the real estate market have far more to do with the concept of supply and demand than they do with the time of year. That’s why it’s important to pay attention to the housing market and whether your local area is experiencing a buyer’s market or a seller’s market.

You might also wonder whether you are missing the investment opportunity of a lifetime! If only you knew beforehand what these terms mean and prepared accordingly!

What Is A Buyer’s Market?

A buyer’s market occurs when supply exceeds demand. To put it another way, real estate inventory is high, and there are plenty of homes for sale, but there’s a shortage of interested buyers. These conditions give buyers leverage over sellers because when supply is higher and demand is lower, the market is forced to respond.

In a buyer’s market, real estate prices decrease, and homes linger on the market longer. So, sellers must compete with each other in order to attract buyers. Typically, sellers will drop their asking prices to gain an advantage in the market. Furthermore, they are much more willing to negotiate offers to prevent buyers from walking away.

When does Buyer's market happen?

Research from the Swinburne University of Technology, suggests that the cheapest time to buy a house in Australia is during, just before or just after winter. In Sydney, Adelaide and Darwin the least expensive month to buy was June or July, suggesting that if you buy during winter you may find yourself a bargain.

WHAT IS A SELLER’S MARKET IN REAL ESTATE?

In contrast to the “buyer’s market”, a seller’s market in real estate is when the seller is at the top. The greater urgency in buyers leads to more property transactions and supply shortages, which in turn results in such market conditions. During such conditions, a property seller can decide to set a price that is way above the going rate and still find multiple potential buyers who actively show interest.

A seller’s market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage.

As all the selling power is held by the seller in a market where buyers are practically involved in bidding wars for properties, the seller has the flexibility to set a price to their liking. This is what the Australian people have been seeing for a while now – where property prices have been jumping from quarter to quarter.

In a seller’s market, homes sell faster, and buyers must compete with each other in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices. Furthermore, the increased interest means that buyers rarely have the power to negotiate and are more willing to accept properties as-is.

When does Seller's market happen?

From the data available it appears listing in the new year and positioning your property to sell between March and May will maximize your chances for success. This will place your property on the market during a period when historically most sales have occurred and buyers are at their most active. Make sure you also do everything you can to increase the value of your property to boost the money in your pocket at the end of the day.

You’ll also want to look into how your local property market is going – is it a buyers market or a seller's market? Have similar properties to yours been sold recently? How much did they achieve? This, along with picking a good season to sell, will increase your chances of achieving your goal. If you want to achieve top result just get our online appraisal from here and know when should you bring your property to the market.

There you have it, the signs and characteristics of a buyer’s or seller’s market in real estate. While the transition from one market condition to another isn’t rapid by any means but can come as a surprise if someone isn’t with the key signs. So now that you know what these two vital terms mean and what they look like, if you come across a news headline one morning stating it’s either the buyer’s or the seller’s market right now, you’ll probably be smiling with a coffee in your hand. You can get our market appraisal to help giving the market update on whether you should buy or sell.

Containd how much your property has grown in the current real estate market?

Note: This is not a financial advicect us if you are looking for the best real estate agent where

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