If you are planning on buying a house soon, your real estate agent may recommend that you wait for the real estate market to be in your favor. If you do this, you might be able to get a better deal on the house. When the market is in the favor of the buyer, it is called a buyer's market, and here are the differences between a seller's market and a buyer's market.
A buyer's market
When the real estate market is favorable for buyers, it means that people buying houses will be able to pay less for the homes they buy. For the market to be considered a buyer's market, there are usually a lot of homes for sale at the time and not a lot of people looking for homes to buy. Because the supply is greater than the demand, prices of homes will drop.
Buyer's markets can occur at anytime during the year, but they commonly occur more in the winter months. During the winter, there are fewer people looking for houses to buy than in the summer. If you want to get the best deal on a home, you should wait for a buyer's market. When the economy is in a slump, it tends to cause the market to push to a buyer's market. People have less money during economic hard times, and this causes fewer people to shop for homes.
A seller's market
On the other hand, a seller's market is a time period in which the real estate market favors sellers of homes. People selling their homes tend to get higher prices during a seller's market, and this is often because there are fewer homes for sale and a lot of people shopping for homes. If there are a lot of people shopping for homes and not a lot for sale, those that are looking for homes to buy are often willing to pay a little bit more for the homes.
During the spring and summer months, the real estate market tends to favor sellers, and this is because there is usually a lot of people shopping for homes in the summer. When interest rates drop in the economy, it can also push the market towards a seller's market because lower interest rates attract more people to buy homes.
If you want the best deal on a home, wait until it is a buyer's market. To learn more about this, contact a real estate agent in your city.Share