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What is a Buyer's Market? How do You Recognize One?

Written by on Wednesday, 04 January 2017 3:11 pm
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What is a buyer’s market in real estate? In brief, it's when the number of homes for sale in an area is greater that the number of buyers. That advantage allows buyers to be  very aggressive with offers, better control the purchase process and essentially dictate the terms of the deal. The best example of this was the aftermath of the crash - the number of homes on the market was staggering and the buyers could literally pick and choose.

Most sources use "months of inventory" as a primary measure to determine if a market favors sellers or buyers. This figure is the number of months it would take to sell all existing inventory at the current rate without adding any new listings. Typically balanced markets have a 4-6 month supply of homes; under that tends to favor sellers and above that favors buyers.

There are a significant number of other variables that play into every market and these include the local economy, interest rates, the area, the home itself, buyers and sellers as well. The critical things to watch for and monitor can be key to either buyers or sellers take advantage of the conditions. Knowing the characteristics to recognize, how to collect and interpret the data and how to structure a response to that data is important for each side.

Learn how to recognize a buyer's market and those things that create one. Buyers and agents that are savvy to the nuances can hold a major advantage when it comes to buying a home. Read all about it at What is a Buyer's Market in Real Estate?

 

The Hank Miller Team provides confidence to clients buying and selling homes in the North Atlanta Real Estate Market. Our unmatched sales and appraisal experience, relentless drive and ability to manage transactions allow our clients to make sound, decisive real estate decisions. We offer full time, full service, personal hands on attention and concierge level service every step of the way for perhaps the most important financial decision you’ll make. 

 

Questions? Need more info? Call 678-428-8276


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