One of the biggest impacts on the real estate market, if not the most important factor, is the amount of housing inventory that is available. The ratio of how many people trying to sell homes vs. how many people there are trying to buy homes is what determines what type of market it is. When there are a lot of houses for sale and not a lot of buyers, the market is considered a buyer’s market. The other type of real estate market is known as a seller’s market. A seller’s market occurs when there are a lot of people looking to purchase a home but not very many people who are trying to sell their home. According to the New York Times, we are currently experiencing a seller’s market.
A seller’s market can allow sellers to price their home a little higher than they would be able to if there were more homes listed in their area. But since there aren’t, if a potential buyer really wants to purchase in a specific area, they may be willing to pay more to be where they want. In addition, buyers may find themselves in a bidding war during this time because there aren’t many homes available for sale.
In a buyer’s market, sellers may have to price their home at a lower listing price because there are a lot of homes for sale and not many people looking to buy. When buyers have a lot of options and little competition, they can easily move on from a home if they believe the seller isn’t accepting their bid because they have other options and may be able to find a seller who is willing to negotiate.
If you need an experienced real estate attorney to represent you, contact our firm today.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.