What you should know is that there can be either a buyer's real-estate market or a seller's real-estate market. If you are in a buyer's real estate market it means that there are more homes available for sale than buyers to purchase them. So you see that if you are a buyer looking to a purchase home in a buyer's real estate market, this is the best financial market in which to buy.
If you are in a sellers market it means that there are more buyers than available houses to buy. This is a perfect situation for home owners who want to sell their property.
Serious buyers in a hot market are often willing to pay more than list price. So you can sell your house quickly and for more than you ask for it. If your market is sizzling hot, you might be able to demand that buyers waive appraisals and inspections, although it's always a good idea to let a buyer have a home inspection.
Serious sellers in a cold market are often willing to negotiate.
In a neutral real-estate market the number of buyers and sellers in the marketplace is equal. These markets are balanced and interest rates are affordable. The scales don't tip in either direction, meaning the market is normal without experiencing volatile swings.