If you’ve been around anyone who talks real estate you will most likely have heard the terms “buyers’ market” and “sellers’ market”. In the world of real estate, these two terms determine everything: the cost of a home; how fast the turnaround rate is for selling a home, as well as the availability of homes when you are looking. Everything for Newburyport real estate is geared to live in these two worlds.
Both of these markets can exist at the same time. It is not a nationwide scale between the two: that is important to remember. If you are in the city you may have a sellers’ market, but in the suburbs, you could have a buyers’ market five minutes away. It will vary by city, town and even county. That is how flexible the real estate market is today. When you buy or sell, it is important to remember that though it is flexible, it can stay in a certain market for a long time. Things don’t always move quickly in the world of real estate.
These two markets are related to the market inventory (how many houses are available for sale in the particular time frame that you are looking.) Then the realtors consider things like closings, location, and price, and eventually figure out how long it would take to sell the particular home that you are looking to sell (or buy) at the price that it’s set at. This is when you find out which market you are in.
If you are looking to buy a home, you obviously want to be in an area with a buyers’ market. When you are in a buyers’ market there are more houses available than the demand of those looking to buy. This allows buyers to negotiate lower prices than asking price, which can hinder the sellers. Where there are more homes on the market, sellers need to be careful about the competition’s price range: a similar house with a lower cost will obviously be taken before a higher priced one. Without the demand to allow the higher prices, the sellers take the hit. In a buyers’ market, the sellers need to bid against each other for a small amount of homes that are listed.
On the other end of the market is where you want to be if you plan on selling your home. In a sellers’ market, the opposite effects transpire: there are less homes for the amount of buyers. In many cases, this will lead to a bidding war that will drive the price up over the listing. The sellers can therefore control how much they negotiate with individuals before choosing another buyer to pass papers with. In a sellers’ market the buyers are competing against each other for a minimal amount of homes.
While each of these markets has its pros and cons for each party, it is important to remember that this can change. While the market itself may remain a buyers’ market, there are new homes that do come up every so often. It’s important to work with a trusted Newburyport realtor to help you navigate the field and find out what is best for your needs as a buyer or a seller.
Working in Newburyport real estate for over 15 years and joining RE/MAX on the River in 2012, I would be happy to answer any of your questions. Visit my website at kevinwallace.realtor or call me at 978-423- 8771 to start your real estate journey.