Real estate agents and mortgage brokers typically describe an area as a buyer’s or seller’s market, depending on whether supply or demand is more significant in that location. There are also divides depending on the price point, location, or time, tipping the advantage to either side.
In a seller’s market, there are more buyers than available properties. This situation could be because of job growth or similar attractors that make people move to an area. Meanwhile, buyer’s markets are areas where there are fewer buyers than sellers. The advantage is with buyers since they could negotiate deals favorable to them. Keep reading to learn more about the factors determining what type of real estate market an area finds itself in.
Factors related to the location could give either side an advantage. High-performing school districts, an accessible work commute, and a high-quality neighborhood could all tip the balance and turn an area into a buyer’s or a seller’s market.
Neighborhoods with these features are likely to sell quicker or command a higher price. However, location isn’t the only crucial factor. Homes in less popular neighborhoods can sell if amenities, safe places to walk, and decent schools are nearby. Consulting a real estate professional should be your first step if you aren’t sure what features to prioritize.
One of the most significant factors is a home’s price point. Realtors often advise homeowners to list their property slightly under the market value in seller’s markets. They know that competition is tough in that environment, and having below-market-value listings attracts buyers and drives up the bids. Meanwhile, homes listed at a higher price risk getting fewer offers, if at all.
The Amount of Time the House is Listed
The best indicator for whether you’re in a buyer’s or seller’s market is the amount of time a home stays on listings. In a seller’s market, contracts move quickly since buyers want to prevent others from snapping up the property. In this environment, getting pre-approved for a mortgage is a must. Speak to a mortgage lender if you want to maximize your chances of getting a home in a seller’s market. Meanwhile, slower markets belong to buyers. You could have second showings, request repairs, or open options for negotiating prices.
The Season When You’re Buying
In North America, summer is the busiest season for buying or selling real estate. If you’re looking to buy a home in the warmer months, expect plenty of competition. At times, buyers have an advantage if they start shopping around in the late fall since sellers are more motivated to sell. They will be more flexible and accommodating during the last months before winter.
Your Dallas and Houston Loan Specialist
The real estate industry cycles between having buyer’s and seller’s markets. Whether you’re throwing your hat in the ring during a seller’s market or waiting until things lean toward the opposite direction, consulting a mortgage broker should be top of your list. Having a real estate expert in your corner will help you navigate the financial aspects of buying a home.
At New Frontier Financial, we aim to help people find the best property for their needs. We serve Dallas, Houston and throughout the state of Texas with more than 20 years of experience providing expert service and customer care. Contact us today at (469) 886-8300 for information!