How’s the housing market?
The answer to that question depends on who is asking.
If you’re selling your home you’ll be concern mostly with how to price your home, your competition and how fast will it sell. If you’re buying a home your concerns will be making sure you don’t over pay for a home and how competitive do you need to be with your offers. In general you’ll want to know how fast homes are selling, are home values increasing or decreasing, what is the competition, and whether it is a seller’s, buyer’s or balanced market.
A seller’s market occurs when demand exceeds supply, or there are more buyers seeking to purchase homes then there are available homes on the market. This often leads to multiple buyers interested in a single home, resulting in bidding wars. A seller’s market is a fantastic time to sell your home as you could secure a sale price that’s higher than your listing price, or at least more than your bottom line (the lowest price you’d be will to accept for you home).
A buyer’s market occurs when supply (available homes for sale) exceeds demand (the number of buyer’s seeking to purchase homes). If you’re buying a home, a buyer’s market is the ideal time to make your move. You might be able to buy a great home for a lower cost that you would in a seller’s market.
In general terms a seller’s, buyer’s and balanced market is usually indicated by the number of months supply of homes for sale. A seller’s market supply is 1 to 4 months. A balanced market supply is 5 to 6 months. A buyer’s market supply would be anything over 6 months.
Seeing the trends will help you as a home seller or home buyer.