Although, some people, seem to attempt to market – time, the real estate/ housing market, in most cases, it is an unwise, course of action! No one knows, for sure, what the future, may bring, because, a combination of factors, including, other economic conditions, supply – and – demand, interest rates, consumer perceptions, specific locations, etc, impact conditions, etc! Basically, the better, one knows, and understands, these possibilities, etc, and proceeds, in an alert way, the smarter, and safer, he is! Trying to time the market, often, either, makes someone, fail – to – act, when advisable, and/ or, take hasty actions, to get – in, on the current trend and conditions! There are four basic, types, of real estate markets. and with that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, each of these, and what they mean, and represent.
1, Very – hot Sellers Market: In my, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, the current conditions, represent, the hottest, Sellers Market, in recent memory! Whether, because, of pent – up demand, caused by the extended, horrific pandemic, or historically – low, mortgage – interest rates, a buying – frenzy, etc, home prices, are, at levels, we have never seen, before! The rate/ pace, of this rise, combined with, the ability to get, greater, bang – for – the – buck, has created home – prices, at such a high level!
2. Normal Sellers Market: It is considered, a Sellers Market, when the number of potential, qualified, interested buyers, out – numbers, the houses, listed, on the market, for – sale! The difference, between this condition, and the one, above, is the degree of impact, These conditions, historically, are part of a regular, recurring, real estate cycle, while the previous one, is quite, a bit, rarer, and more extreme!
3. Neutral: Markets are considered, neutral, when there is, a similar number of buyers, and sellers, and, thus, neither the buyer or seller, have an advantage! In this scenario, there is often, significant competition, and negotiations, and negotiating expertise, make a significant difference!
4. Buyers Market: We consider it, a Buyers Market, when/ if, the number of houses, available, and listed, for – sale, exceed the number of qualified, interested buyers! Homeowners must be more flexible, and marketing, often, matters more, under these conditions!
The better you know, and understand, the different types of markets, and the significant impacts, of each, the better, you will be able to adjust, to your benefit, and best – interests! The wisest approach, is, to avoid, the temptation, to try to get – greedy, and/ or, market – time!