Buyer’s Market vs Seller’s Market: A Guide to Decoding Market Conditions
How do you know for sure whether it’s a buyer’s market vs seller’s market? Decode the market conditions that matter most with this guide.
The real estate market fluctuates based on supply and demand. Like weights on opposite sides of a balance scale, a change to one end tips the scale’s balance, affecting the other. When one — supply or demand — outweighs the other, you have a market imbalance. If you’re planning to sell your home, understanding whether you’re in a buyer’s market vs seller’s market is crucial.
The imbalance in real estate translates into either a buyer’s market or a seller’s market. An ample supply (lots of homes for sale) and limited demand (fewer buyers) lead to a buyer’s market. Conversely, the lack of supply (fewer homes for sale) and abundant demand (lots of buyers) result in a seller’s market.
When you’re selling, the type of market you’re in makes all the difference to your bottom line. It can affect:
- How you prepare your home for sale
- How quickly your home will sell
- How much you’ll net for your home
To help us understand both buyer’s and seller’s markets, we spoke with top real estate agent Kim Rock. The 17-year industry veteran has a track record for selling homes fast — her listings close 68% quicker than the average Philadelphia agent.
Step one: Talk to an expert!
Selling your house soon? Connect with a top agent near you to get an expert opinion on how much your house will sell for, what to fix before listing, and the latest local housing market trends.