What Are Market Conditions?
The real estate market is always changing. It helps to understand how market conditions can affect your position as a seller: We can experience one of the three types of markets, remembering that markets are fluid and ever changing:
The supply of homes exceeds the number of buyers (supply is greater than demand). In this market, prices tend to drop and the homes stay on the market longer. Thus, your home may take longer to sell and you will have less negotiating power in terms of the selling price. Fortunately, you will be in the driver’s seat when making an offer on your next home.
The number of buyers exceeds the number of homes on the market (demand is greater than supply). In this market prices are increasing and homes sell quickly. As a seller, you will probably have more negotiating power and obtain a higher selling price for your property. Unfortunately, you will be on the other side of the fence when purchasing your next home.
The number of homes on the market is approximately equal to the number of buyers (supply equals demand). In this market, prices are stable and homes sell within a reasonable period of time. It is a calm atmosphere with buyers having a satisfactory number of homes from which to choose.
General Trends in the Market
Spring – Late Summer (February 15 – July 30)
Can you believe the spring market starts in mid-February?! Generally speaking in the Spring, there tend to be the most number of houses for sale, but also the most buyers looking. Homes that show well and are priced well will have copious amounts of interest and are likely to have multiple bidders. This is a time when families are out looking and want to have their children moved into their new home before school starts again in September. Also, in a more balanced market, Sellers should list sooner so they have time to sell their house before the good inventory runs out.
Late Summer – Fall (August 1 – November 30)
Last minute purchases by families in very early August tend to give sellers the driver’s seat which is quickly followed by a more balanced or buyer’s market in the fall. This time of year tends to leave a glut of not so desirable properties on the market, but it may also be a blessing in disguise for a fixer-upper where the Sellers need to sell.
Winter (December 1 – February 14)
Wintertime brings very serious Buyers to the table, but sadly there aren’t too many of them. As a Seller though, in some market conditions it is a great time to list because there isn’t much else available at this time.
Trust in the fact that when you hire our team, we will be able to guide you through all the markets and get you the most money faster than most other agents in the city.