3 Different Types of Real Estate Markets
The three different types of real estate markets are often referred to as sellers, balanced, and buyer’s markets. In a seller’s market, there are more homes for sale than there are buyers. This can often lead to higher prices and longer selling times. A balanced market is one where there is an equal number of buyers and sellers. Prices in a balanced market are often more stable, and homes tend to sell in a shorter timeframe. A buyer’s market is when there are more buyers looking for homes than there are homes for sale. This can often lead to lower prices and shorter selling times.
A seller’s market is less than 3 months of inventory. A balanced market is 3-6 months of inventory. A buyer’s market is more than 6 months of inventory. To determine inventory, you take the number of new houses coming onto the market divided by the number of houses sold in a given month or period.
The goal for most homeowners is to have a balanced market so that they can get the best possible price for their home. However, it is important to remember that a balanced market can still have some volatility. Prices may go up and down, but they should eventually settle into a more stable range.
When you’re ready to sell your home, it’s important to work with a real estate agent who understands the market and can help you price your home accordingly. If you’re buying a home, working with an experienced buyer’s agent can be helpful in negotiating the best possible price.
It’s important to know which type of market you’re in. This can help you understand what to expect in terms of prices and selling timelines. It can also help you form a strategy for buying or selling a home. If you’re not sure which type of market you’re in, your forever agent can help guide you through the process and get you HOME!
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