We often hear people talk about a Buyer’s Market/Seller’s Market/Balanced Market but what does that really mean? Well as you suspected, it boils down to supply and demand. In a Seller’s Market, there are less homes than there are buyers. In a Buyer’s Market, the reverse is true – too many homes on the market for the number of buyers that are looking to purchase. A Balanced Market means that there is a good balance of homes for sale compared to the number of buyers looking to purchase. You may have also heard the term “months of inventory”. This means based on the number of recent homes sold in comparison to the number of homes on the market, there is a formula that calculates how many months it would take to sell a well-priced home. When there is 2-4 months of inventory of homes on the market, this is considered to be a Balanced Market.
So where are we at currently:
Homes priced over $1,000,000. This category currently has many more homes than buyers. In Newmarket we currently have 13 months of inventory on the market in this price point. This would be seen as a Buyer’s Market.
Homes priced $750K-$1M. – 6.6 months of inventory. Buyer’s market
Homes priced $500K-$750K – 2.4 months of inventory. Balanced Market.
There is talk of one more interest rate hike later this year. If you are looking at getting into the market, it’s a good time. Prices have dropped since last Spring and while there isn’t much inventory in the lower end price points, there are still homes popping up and selling within a few weeks. So don’t sit by the sidelines. Make sure you have a relationship built with a Realtor so that when something comes up on the market, you can call them and go see it.
– this is your time! The interest rates have risen marginally but not to a point where things look grim. Towns and semis that are priced right are selling. The homes in the higher price points aren’t seeing as much activity and for those seller’s that need to sell, we are seeing price reductions to help motivate buyers. You are well positioned to consider an upsize in this market. I would encourage you to sell first, and then buy.
– this is a bit trickier. If you are looking to sell a home in one of the higher price points, be sure you are pricing your home right and it is in good shape to compete with other homes in your area at similar price points. Depending on your financial situation, it might be best to sell first before you buy as it may take longer based on the number of competing homes.
Sometimes, the market is what the market is and we have no choice but to move based on life circumstance, job relocation, changes to family dynamics, etc. Don’t fret if you read the above information and are feeling a bit uneasy about your situation. The truth is, all homes that are priced according to current market conditions, presented well and have a real estate professional marketing their home in the right manner, will sell. There is a buyer for every home!
Whatever your situation, I’m here to help – just ask!