How Market Types Can Tell You When It’s the Best Time to Sell a House
Do you know the difference between a seller's market and a buyer's market?
Seller's Market
A Seller’s Market indicates that there are a lot of home buyers (high demand) but not very many homes on the market (low-supply).
Signs of a Seller’s Market:
- Number of listed homes on the market is low compared to previous months and years
- Listing prices are considerably higher than prior sales and are on the rise
- The overall closing percentage is increasing
- Number of days that properties remain on the market is decreasing
Buyer's Market
A Buyer’s Market occurs when there are too few buyers for the number of properties on the market. This would be a good time for first-time home buyers to enter the market.
Signs of a Buyer’s Market:
- The number of listed homes on the market is higher compared to previous months and years
- Listing prices are considerably lower than prior sales and are on the decline
- A lower overall closing percentage
- Number of days that properties remain on the market is increasing
Neutral Market
A Neutral Market indicates a relatively similar number of sellers to buyers in the market.
Signs of a Neutral Market:
- The number of listed homes on the market is steady
- Listing prices remain consistent with prior sales
- The overall closing percentage is reliable
- Properties remain on the market for consistent periods of time
