You may have heard the term “It’s a Buyer’s (or Seller’s) Market.” What does that mean? Who determines when it’s one market type or another? Why should it matter to current and soon-to-be homeowners?
The type of market is based on how many people want to buy homescompared tohow many homes are available for purchase. It’s a Buyer’s Market when there are more homes for sale than buyers. It favors the buyer – the prices remain low, there’s more opportunity for negotiation, and the buyer may get more of what they want from the seller. It’s a Seller’s Market when there are more buyers than homes for sale. This market type favors the seller – they can ask for more money and may receive multiple offers.
The best way to determine the market type is to calculate how many months it would take to sell all of the homes on the market. You divide the total number of homes for saleat the end of the month by the number of sold homes in that month.
If it takes 6 or more months, it’s a Buyer’s Market.
If it takes 3 or less months, it’s a Seller’s Market.
[Enter information about current market type in Orange County. Ask First Team.]
If you’re thinking about selling or buying a home, a real estate agent can help you determine what’s happening in your local market. Our real estate partner, First Team Real Estate, has the latest tools and technology that can even determine the market type in your preferred neighborhood. Also, be sure to check out First Team’s [monthly/quarterly] OC Real Estate Market Update[link to current issue]. It provides information about where prices are falling and where homes are selling fast.