| Market conditions
|
Characteristics |
Implications |
Buyer's market
The supply of homes on the market exceeds the
demand. |
High inventory of homes. Few buyers compared to
availability. Homes are on the market longer. Prices
tend to drop. |
More time to look for a home. More negotiating
leverage. |
Seller's market
There are more buyers looking to buy a home than
there are homes on the market. |
Smaller inventory of homes. Many buyers. Homes
sell quickly. Prices usually increase. |
May have to pay more and make decisions quickly.
Conditional offers may be rejected. |
Balanced market
The number of homes on the market is equal to the
number of buyers. |
Sellers accept reasonable offers. Homes sell
within an acceptable time period. Prices are
generally stable. |
More relaxed atmosphere. Reasonable number of
homes to choose from. |
