As a first time buyer, what makes the real estate market a "buyer's" or "seller's" market?

Answer 1

A buyer's market is where there are more sellers than buyers. Since there is more homes on the market, a prospective buyer has more clout in getting a good price on a home.

A seller's market is the opposite where there are more buyers looking to purchase a home than there are sellers looking to sell their home. The prospective seller has more clout in getting a good price on their home they are trying to sell.

Answer 2

when buyers are very anxious to get into owning real estate to the point that they will provide even multiple, competitive bids for one piece to one seller, that is a seller's market.

it is a buyer's market now and for, as far as i can see based on the economy being strong, interest rates low, unemployment low, and historical records back until at least after the depression, it will continue to be a buyer's market. you are in a superior position to buy. you are in your most negotiable position in a buyer's market.

going from a seller's to a buyer's market has a lot to do with pent-up demand for housing, not really with what the interest rate is. but it is a better seller's market when a lot of people are employed.

however, know this. for all the years i've been a broker-owner and all the years' experience my first managing brokers gave to me, amounting to about 53 years of market time, this is what happens (usually, but not over 2000 - 2005, which was the hugest and longest seller's market i have ever seen--it was amazing):

you have 5 years of a buyer's market, where you are in the chips. that will be followed by 2 years of a seller's market, where they hold all the cards. if you buy in a buyer's market, sell dear towards the end of the seller's market so that you can hit the next buyer's market in your next purchase.

the true problem today, the reason oh so many houses are sitting on the market with yard signs, is because of PRICE. just imagine: when each and every year of five years was a seller's market, the prices were going up every year, yes? they have hit the point that no family can realistically buy them. so, if these sellers just keep thinking that they can keep their prices high, now, when that seller's market stopped about one year ago, they are fools.

you should buy a house, now.

Answer 3

A "buyers" market happens when the number of houses or residential units far exceed the demand for same, so the propsed buyer can expect a better deal through negotiation and can call most of the shots in his/her conditions of sale.
A "sellers" market happens when the demand for housing far exceeds the supply. thus people who are selling can set the terms and get more of what they want, often over the listing price because more offers will pour in due to the unavailability of housing.

Answer 4

Well, currently a lot of ARM & other flaky loans are resetting and lots of people won't be able to make the mortgage AND the pyramid has flattened (there are not enough buyers to bail them out) soooo
Prices will have a wild ride . . . sellers are seeing their homes sit, and sit and sit, even after dropping prices 10s of thousands .
I'm guessing buyers market 2007 .

Answer 5

Buyer's Market = Home prices are low and there are plenty of homes available

Seller's Market = Home prices are high and there are not many available.

Answer 6

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Other real estate sites are also noted below:
http://www.brokerforyou.com/brokerforyou


http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

http://www.san-diego-for-sale-by-owner.com

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com

http://downtown-san-diego-real-estate-views.blogspot.com

http://san-diego-coastal-real-estate.blogspot.com

http://sandiegofsbo.blogspot.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html

http://downtown-san-diego-real-estate-views.blogspot.com

http://www.poway-real-estate.info

http://www.del-mar-real-estate.info

http://www.la-jolla-real-estate.info

http://www.los-angeles-real-estate-brokers.com

http://www.san-jose-real-estate-brokers.com

http://www.orange-county-real-estate-brokers.com

http://www.san-francisco-real-estate-brokers.com

http://www.sacramento-real-estate-broker.com