| Market conditions |
Characteristics |
Implications |
Buyer's market
The supply of homes on the market exceeds the demand. |
High inventory of homes. Few buyers compared to availability. Homes are on the market longer. Prices tend to drop. |
More time to look for a home. More negotiating leverage. |
Seller's market
There are more buyers looking to buy a home than there are homes on the market. |
Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase. |
May have to pay more and make decisions quickly. Conditional offers may be rejected. |
Balanced market
The number of homes on the market is equal to the number of buyers. |
Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices are generally stable. |
More relaxed atmosphere. Reasonable |
