The terms “buyer’s market” and “seller’s market” are commonly heard in the real estate market and very essential to know when purchasing a home. As with any market, factors such as supply and demand, interest rates, inflation, economic growth, or even employment can cause fluctuating business cycles. Such fluctuation helps determine whether the current market state favors buyers or sellers.
Buyers Market Defined
When there are more sellers than buyers in the market, or when the supply is greater than the demand. Typically, sellers here have to sell to buyers at prices and conditions that are acceptable to the buyer. In a buyers market, buyers have the upper hand. They have more control over the set prices and the conditions under which the sale is made and can demand reduced prices.
Sellers Market Defined
When there are more buyers than sellers in the market, or when the demand is greater than the supply. Typically, buyers here have to compete with each other to purchase one property. In a sellers market, sellers have the upper hand. They have more control over the set prices and the conditions under which the sale is made, and buyers must meet the costs and requirements set if they want to purchase the home.
The Key Difference Between a Buyers Market and Sellers Market?
As its name suggests and defined above, a buyer’s market is beneficial to the buyer, and a seller’s market is beneficial to the seller. The key difference between the two is:
1) Supply is more significant in a buyer’s market than demand, resulting in competition among sellers and a limited number of buyers. This causes price decreases.
2) Demand is more significant in a seller’s market than supply, resulting in competition among buyers and a limited number of sellers. This causes price increases.
Why NOW Is The Best Time to Build a Home
Keep in mind that buyer’s or seller’s markets are not forever. Fluctuations can occur depending on market changes and market conditions. The current real estate market is a seller’s due to prices increasing across all markets. Because of this, many buyers are wondering if now is the right time to buy.
Good news! If your intent to purchase is for a long-term home, it most definitely is the right time for you to buy! Building a brand new home with a new construction builder is the smartest way to invest in a long-term home. View the chart below to see the upward trending median sale price of homes in the United States for the last couple of decades.
There’s no doubt that home values have been appreciating since 1965. For buyers who plan to live in the home for more than a few years, it’s absolutely a great time to purchase. With record-low interest rates and a low market downturn impact, buying now will save you money in the long run. Short-term fluctuations in market value historically give way to long-term appreciation. Learn more about why now is the right time to buy.
Get Price Certainty with Maronda
Regardless of the current state of the market, it’s always a good time to build your dream with Maronda! Don’t settle for what’s available on the market; build the home of your dreams whenever you’re ready to. With Maronda, you will avoid the resale home market’s bidding wars, and the pressure to make a rushed purchase decision due to the current state of the market.