Knowing the differences between a buyer’s and seller’s market can help you feel more confident in the timing of your next home purchase.
Buyer’s Market – Supply exceeds demand
Seller’s Market – Demand exceeds supply
The benefits of a buyer’s market are clear. More inventory means more choices, lower prices and a stronger negotiating position. It’s a great time to buy, especially for first time home buyers who don’t have to worry about selling their current home.
In a seller’s market, the benefits to buyers are not as obvious but they are significant.
A seller’s market means a growing local economy. Not only will the newly purchased home increase in value more quickly, but local tax revenues will increase as property values increase. This means your new community can invest in better roads, schools and infrastructure. The local job market is likely to be more stable in a growing economy and increased consumer spending will attract new business and entertainment venues to the area.
Long-term, the benefits of living in a strong local economy will outweigh the potential costs of buying in a seller’s market.
In any market, it’s important to start with a reliable prequalification from a well-known and experienced lending team like the Boles Group at Bay Equity Home Loans. Your Boles Group loan officer will help you set your budget and recommend a GOOD local realtor to find the perfect home and negotiate the best possible price regardless of market conditions.