It’s A Buyer’s Market, Or Is It?

         It's A Buyer's Market, Or Is It?

Written by Cassie Hansley, Realtor® with Wilkinson And Associates in Lincolnton 

More times than not, when I tell people that I am a Realtor®, it seems to be followed by "...so, how's business these days?" and when I respond with "Great!" I always tend to get a look of confusion from the person asking. But the one thing that intrigues me the most is how often I hear the statement, "...well it is a buyer's market".  Now I know that in the Internet age, everyone becomes an expert since all of the facts are posted in blogs, newsletters, and websites across the world, but, let's slow down a second and let me tell you what a buyer's market really means to you.

First of all, in real estate, there are only two types of markets; buyers and sellers. The difference between the two types of market simply comes down to supply and demand. Realtors keep track of home sales volume, homes for sale, and days on the market. Typically, when there is enough inventory to cover each active buyer for six months then that usually dictates a buyer's market. There can be many reasons why the market will change but the big reason right now is the number of foreclosures in the country. This helps us to determine the national market on average. There are just more homes than there are buyers. But, you have to look at your "local" market conditions to evaluate whether you are in a buyer's market or not

Some things that may affect you locally are the job market, government enhancements to the community, property taxes, and seasonal changes. If there are major job reductions in your area, then there will be more homes on the market. If the local government makes no effort in maintaining roads or keeping down crime rates, people will move. If property taxes are constantly on the rise, you may not be able to afford (or want to pay) higher taxes and therefore you put your house on the market. A buyer's market may occur seasonally as well, due to the fact that more people tend to move during the warmer months. There are more variables but you get the idea. So what does this mean if you are going to sell your home during a buyers market?

As my husband always says, there are only two reasons why you do anything; you either "need to" or you "want to".  If you need to sell your home, then you have to adjust your sales price according to the current supply and demand in your local area. During a buyer's market, this often means you have to entice buyers with a lower sales price than comparable homes in the area or you must add incentives to the purchase, such as helping with closing costs or leaving appliances in the home. If you "want" to sell your home, speak with an agent. A good real estate agent will help you determine your local market conditions and price your home accordingly.  

If you're an active buyer right now, things couldn't be much better for you. Interest rates are extremely low, house prices are declining, and the government has introduced new laws to protect you from predatory lending practices. So if you have ever thought about buying, you should really take advantage of this market now before it starts to change. And it will!

As buyers start to show more interest in the market, more homes will be sold, home prices will begin to climb, and we will slowly start to transform into a seller's market again. But for now, we must ride the roller coaster

START YOUR HOME SEARCH HERE!!!!