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The Difference Between a Buyer’s and Seller’s Market

Here’s how to determine if we’re in a buyer’s, seller’s, or normal market.

What’s the difference between a buyer’s market, balanced market, and seller’s market? As a real estate agent, you need to know the difference between those three markets, and be able to explain the difference to your buyers, sellers, database, and social media.

Let’s first talk about a buyer’s market. Experts define a buyer’s market as a market where there are seven months or more inventory on the market. So in a buyer’s market, homes tend to depreciate, days on the market are long, and there are a lot of price changes before going under contract. 

Meanwhile, a balanced or neutral market is when there are five or six months of inventory, and home prices tend to hold steady. 

“Here’s how to determine if we’re in a buyer’s, seller’s, or normal market.”

A seller’s market is when there are four months or less. In some markets the past two years, you might have had four minutes of inventory in some markets because… before an agent even put a home on the market, they already had multiple offers.  However, markets are shifting and cooling a little bit now. Bottom line, homes tend to appreciate in a seller’s market. 

You might have a seller in the past ask, “How’s the market overall?” Overall it might be a strong market in the average price point price range, but in the luxury price points it might still be in favor of buyers. So even within the same market and town, you might have a sellers market in certain price points and a buyers market for luxury homes. 

If you have questions on this topic or another, jump on a Luxury Friday’s call with me so I can quickly respond. It’s a live stream where you can ask me any questions, real estate-related luxury or not, and you can also submit your stale listings, and we’ll do a fresh analysis so go to LuxuryFridays.com. 

If you have questions about this topic or anything real estate related, email me. I’m happy to help!

Michael LaFido
Founder & CEO | Luxury Listing Specialist Designation (LUXE)
Michael@MarketingLuxuryGroup.com
LuxuryListingSpecialist.com
LuxurySpecialistGear.com

Click HERE to see where Michael is speaking next or where his next LUXE class will be.

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