Is it a Buyer's Market or a Seller's Market?
Even if you're new to the home buying scene, you've probably
heard of the term seller's market or buyer's market. It's
important to realize the difference so you're prepared when you
find that perfect home for you, or get ready to sell yours.
So, what are the differences? When there is a surplus of
inventory, meaning when there are more listings that there are
buyers, you are in a buyer's market. You'll find that prices tend to
rise much slower in a buyer's market. On the other hand, when
the amount of buyers far exceed the number of available listings,
a seller's market goes into effect. You'll also find that homes sell
much quicker during a seller's market. A balanced market occurs
when conditions do not necessarily favor the buyer or seller;
supply and demand are fairly equal and prices stablize.
Absorption rate is calculated by dividing the total amount of
available homes by the total number of home sales for the month.
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