Buyers vs. Sellers Market
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Buyer's Market vs. Seller's Market
Supply exceeds demand. Buyers hold the advantage.
More homes available than buyers looking to purchase.
A buyer’s market occurs when the supply (available properties for sale) exceeds demand (the number of buyers seeking to purchase properties). If you’re buying a new home, a buyer’s market is the ideal time to make your move.
You might be able to buy a great home for a lower cost than you would in a seller’s market. With more properties available, you have room to negotiate on price, request repairs, and take your time finding the right fit.
If you’re trying to sell your property in a buyer’s market, your home may remain on the market longer before you’re able to secure a buyer, due to the large number of available properties. Patience and competitive pricing are essential.
- Many "For Sale" signs staying up week after week
- Homes listed at reduced prices
- Multiple open houses with low attendance
- Properties taken off market and relisted lower
Demand exceeds supply. Sellers hold the advantage.
More buyers competing than homes available to purchase.
If you’re buying a home in a seller’s market, be aware that the seller has the advantage. If other buyers are interested in the same property you’re making an offer on, trying to get a lower sale price probably won’t work to your advantage.
In fact, you could lose the opportunity to purchase the property altogether if a competing buyer makes a higher offer. Seller’s markets are sometimes called “renter’s markets” for this reason — sometimes potential buyers need to keep renting until they can save up a higher down payment and compete with other buyers in the market.
You’re in control. Homes sell quickly, often at or above asking price, and buyers are competing for limited inventory. You can be selective about offers and less flexible on concessions.
- Few "For Sale" signs — homes disappear quickly
- Open houses with many competing buyers
- Offers above asking price and bidding wars
- Homes selling within days of listing
How the Two Markets Compare
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FACTOR
|
BUYER'S MARKET
|
SELLER'S MARKET
|
|---|---|---|
|
Home inventory
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High — many properties available
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Low — limited options
|
|
Time on market
|
Homes sit longer before selling
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Homes sell in days, sometimes hours
|
|
Sale price vs. list price
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Often at or below list price
|
Often at or above list price
|
|
Negotiating power
|
Buyer has leverage
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Seller has leverage
|
|
Bidding wars
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Rare
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Common
|
|
Concessions (repairs, costs)
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Sellers more likely to offer concessions
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Sellers rarely offer concessions
|
|
Best strategy for buyers
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Take your time, negotiate hard
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Get pre-approved, move fast, make strong offers
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|
Best strategy for sellers
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Price competitively, stage carefully
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Price strategically to attract multiple offers
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Whether you’re navigating a competitive seller’s market or have the luxury of time in a buyer’s market, one thing never changes: speed wins. As a direct lender, PHS issues pre-approval letters the same day in most cases — giving you the credibility to compete with cash buyers and move the moment the right property comes up.
In a seller’s market, a same-day pre-approval from a direct lender can be the difference between getting the home and losing it. In a buyer’s market, it shows sellers you’re serious when others aren’t. Talk to a PHS loan officer before you start your search — it’s the single smartest move in any market condition.