Questions Of The Day: How To Know If It’s A Buyer’s Or Seller’s Market
Are you planning on buying a home any time soon? In this new video, The Corcoran Connection founder and top broker Jeanine Corcoran shares valuable insights on how to know if it’s a buyer’s or seller’s market.
A buyer’s market is a situation wherein the supply exceeds demand. This means that buyers have the advantage when it comes to negotiating price. In real estate, this also means that houses tend to sit on the market longer. And when they do get sold, they tend to sell for less. This is partly due to sellers competing in a price war to attract buyers.
On the other hand, a seller’s market is when people are competing to buy real estate. In this type of real estate market, homes usually sell for more than the list price because of the high demand.
Jeanine’s Real Estate Advice On Assessing The Housing Market
According to Jeanine, every market is different and dynamic. What is happening within your community could be in stark contrast to the housing situation in another part of the state.
One way that professionals gauge the status of the real estate market is by looking at the inventory. In a balanced market, there would be five to six months of inventory. This means that, if nobody else in Central Florida sold their homes, it would take five to six months to sell all properties on sale.
If the inventory is over six months’ worth, it is a buyers’ market. Keep in mind, though, that this is not something that changes overnight. You can’t have a surplus of homes for sale today and then have everything sold out the next day.
Right now, we’re at a low inventory phase. This means it is a seller’s market. Homes on sale are few and far in between, which means prices are higher than what you would normally pay.
Another way to understand the market is to know your active listings. The best way to do so is to contact your realtor. Real estate agents have access to real-time information, which they get from local boards and MLS (Multiple Listing Services).
What’s Happening In Central Florida Right Now?
According to one report, home sales in Orlando “spiked” 25% year-on-year in October. This was due to “tight inventory and (hesitant) buyers returning to the market.” The median home price was at $290,000, 10% higher than in 2019 but down more than $5,000 from September. Total inventory was down 20% versus the same period in the previous year. And with record-low lending rates, many potential buyers are keen to make their first purchase.
These factors indicate a seller’s market. And this trend is expected to continue in the coming months.
According to the National Association of Realtors® (NAR) Chief Economist Lawrence Yun, the housing market surge will likely continue as we begin a new year. He predicts an increase in home prices, low mortgage rates, and a surge in sales of new homes.
He also noted that even with pandemic-related foreclosures, the market will still lack inventory because of how quickly it will be absorbed. Therefore, there will be no significant reduction in home prices.
Whether It’s Home Buying Tips Or Home Selling Tips, We’ve Got You.
With or without a global health crisis, nobody can predict how the market will behave in the next weeks or months. But while it cannot be predicted, it can be tracked. And that’s what realtors are great at.
Jeanine’s team can provide real-time real estate data on your Central Florida community. They can share information that you wouldn’t otherwise find online with a simple Google search. They can help you go over statistics, and most important of all, make sense of it based on what you need.
If you are a prospective home buyer, check out The Corcoran Connection’s official YouTube channel for more expert tips on how to buy a house. We can also help you if you’re on the other end of the spectrum and trying to sell real estate.
Let’s talk real estate! Call us now.