Buyers Market vs. Sellers Market: Is Now The Right Time to Buy a Home?


Commonly heard in the real estate market, the terms “buyer’s market” and “seller’s market” are essential to know when purchasing a home. As with any market, simple supply and demand, interest rates, inflation, economic growth, or even employment can cause fluctuating business cycles. All these factors play a role in determining whether the current state of the market favors buyers or sellers. 

What is a Buyer’s Market?

When the supply is higher than the demand, or when there are more sellers than buyers in the market. Sellers here typically have to sell to the buyer at prices and conditions that are acceptable to the buyer. Buyers have the most control in a buyer’s market as they can demand reduced prices.

What is a Seller’s Market?

When the demand is higher than the supply, or when there are more buyers than sellers in the market. Buyers here compete with each other to purchase one property. Sellers have more control over the set prices and the conditions under which the sale is made. Sellers have the upper hand in a seller’s market as the buyers must meet the costs and requirements set if they want to purchase the home.

What is The Difference Between a Buyer’s Market and Seller’s Market?

Defined above and its name suggests, a buyer’s market is beneficial to the buyer, while a seller’s market is beneficial to the seller. The main 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.

Is Now The Right Time to Buy A Home?

Be mindful that buyer’s or seller’s markets are not forever. They fluctuate depending on market changes and market conditions. With prices increasing across all markets, the current real estate market state is a seller’s. Many buyers are wondering if now is the right time to buy.

If your intention to purchase is for a long-term home, it most definitely is the right time for you to buy! The chart below shows the median sale price of homes in the United States for the last couple of decades.

As you can see, 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. Buying now will save you money in the long run with record-low interest rates and a low market downturn impact. Short-term fluctuations in market value historically give way to long-term appreciation.

Get Price Certainty with Maronda

Regardless of the current state of the market, it’s always a good time to buy a home with Maronda! Instead of settling for what’s available on the market, you can build the home of your dreams whenever you’re ready to. Not only will you avoid the resale home market’s bidding wars, but there will also be no pressure to make a rushed purchase decision due to a market’s current state.

Start building a new home today.

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