Real estate markets change. Sometimes a buyer’s market, others a sellers. So why does it change? There are a lot of reason why it could.
Real estate markets swing between a buyer’s market and seller’s market. When there are a lot of houses for sale and not a lot of buyers, the buyers have the upper hand and it’s their market. When there are a few sellers and a lot of buyers, the sellers have the upper hand and it’s their market. It’s a cyclical thing and it changes from time to time.
The biggest factor in changing the market from one to another are economic factors. The perfect example of this was before, during and since the real estate bubble burst. Before, the markets everywhere were strong sellers markets. There were a lot of buyers with access to easy financing, and home values soared. Then the bubble burst. Suddenly homes weren’t worth what they had been. Financing became harder to get. While the market was bad for both buyers and sellers, buyers had an edge. For a long time it stayed a buyer’s market. Sellers were desperate to sell but there weren’t enough buyers. Now that things have improved the markets in some places have changed again. Home values are improving and sellers are again getting the upper hand.
Things like jobs can make a difference too. If a new employer moves into the area, then people come for jobs and homes become a need. If an employer leaves the area and takes jobs away, then the market switches over again.
A buyer’s and seller’s market is a fluid thing. If you are looking to sell your home, or buy one, knowing which market is hot in your area is important. Knowing what contributes to each is important as well. It can help you not only decide if now is the time to sell or buy, but whether a market change is coming.