The Changing Real Estate Market

What is a Buyer’s Market? How does it differ from a Seller’s Market?

…So what does that mean to you?

Changing Housing Market

Buyer’s Market
When there are lots of properties on the market at the same time, the buyer has lots of choices and therefore often has the upper hand in negotiations. He can always go buy another house if any particular house doesn’t pan out.

Seller’s Market
When there are very few properties for sale at any one time, the buyer often has to settle for terms or even a home that are not what he really wanted. There just are not many choices. In this case the seller often has the advantage, because there are more buyers than properties. It means the buyer must often pay more than the asking price to compete with other determined buyers.

Balanced Market
Most of the time, there enough homes on the market and buyers looking for homes that neither has much of an advantage.

The nature of the real estate market is that the pendulum swings. During the “recession” of the early nineties, it was a Buyer’s Market. The economy was poor and consumer confidence was low. During the late nineties, the economy and consumer confidence turned quickly and it fast became a Seller’s Market. As soon as the pent-up demand (actually stored indecision) was satisfied, it became a Balanced Market.

When you are a buyer, you must consider what kind of market you are operating in, and change your strategy accordingly.

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About the Author

Natalie Neith has 22 years of experience in Los Angeles real estate and is a consistent top producer for the John Aaroe Group. Accredited by the select Architectural Collection, Natalie is an expert in marketing historic and architecturally distinctive properties. From vintage mansions to contemporary condos to everything in between, she has sold hundreds of homes in the LA area, representing celebrity sellers, repeat customers, investors and first-time buyers alike.

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