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

 

 

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

 

 

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

 

 

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