Are We In A Buyers Market?

Real estate has something called a buyers market and a sellers market. Very simply, they are forms of measuring the ratio between inventory and demand and they imply a level of leverage for the buyer or seller. Very often when people ask is it a good time to sell or buy, they are really asking is it a buyers market or sellers market. In a seller market the general idea is that sellers have the negotiating power. In a buyers market the general idea is that buyers have the negotiating power. Now there are 2 very important things to keep in mind about buyers/sellers market.

#1 Every market has its benefits for both seller and buyer. This is an interesting point because the idea of buyers and sellers market is that it’s best to be on one or the other side, but actually there are always benefits to the seller or buyer; they may be slight or few, but they’re there. For instance, in a sellers market interest rates are generally lower—meaning you as a buyer get a lower rate and that’s good for you!

#2 There are general markets and there are property specific markets. What does this mean? Well, the city you live in may be in a sellers market BUT there may be a property in that city no one wants, that has no offers… that property is a buyers market! This is quite fun since it essentially means you can always get a deal in real estate!

In summary, while the terms buyers market and sellers market are useful for understanding general conditions, they don’t tell the whole story. Every market cycle presents opportunities—it’s just a matter of recognizing where they are and how they apply to your situation. That’s why working with a great lender and realtor is so important. They can help you identify opportunities you may not see on your own, guide you through the numbers, and make sure you’re positioned to act when the right moment comes—regardless of what kind of market you’re in.