Lately in the news media we have been hearing that it is a "buyer's market." I am certain that like most people you are asking "What exactly does that mean?"
In the stock market - when there is a "buyer's market" there exists a situation in which there are more sellers than buyers. Low prices result from this excess of supply over demand - it is also known as a "soft market."
In real estate there is rarely a situation where there are truly more homes than buyers. However there are more sellers that are serious about selling.
There may appear to be more homes on the market because some homes have been on the market for a while. During the spring & summer, homes may have been on the market for only a few weeks. In the autumn & winter months, homes may be on the market for over 60 days. These seasonal factors are generally the same year after year.
In a few cases there are sellers that believe that they will receive offers for their asking price or more, and will maintain their inflated prices with the illusion that this is going to occur. A seller that is working with an aggressive, knowledgeable agent will be told these are unrealistic expectations and they will price the property more accurately based upon recent sales prices in their area. Therefore, properties are priced more competitively and sellers are doing what they can to sell - by offering incentives and creating more appeal.
One other item to remember is that the national news media is talking about the country as a whole. However, in real estate everything is local - in recent years the Baltimore area has demonstrated a strong housing market.
Additionally, interest rates are still very reasonable. Even those with less than perfect credit are able to acquire rates that will allow them to purchase a home without over-extending themselves.
The economy is strong - look at the growth over the past few months of the S&P500, NASDAQ, and DOW - All are up! Further, the inflation rate is down, businesses are showing record earnings, and wages are up over previous years. These factors contribute to a stable marketplace.
While sellers may be willing to negotiate, they are rarely going to lower the sales price by more than 10%. A Buyer's Market means that it is a good time for someone to purchase a home. This is because of:
- Competitively Priced Homes
- Low Interest Rates
- Strong Economy
In order to gain the advantage over other buyers - make certain that you are pre-approved for a home loan! Know what you can realistically afford, know the area you wish to live in, and what features/amenities you want in a home.
I am familiar with the greater Baltimore metropolitan area - I can provide you with neighborhood details, recent sales data, and a variety of other useful information. Please feel free to contact me to request additional information or to set an appointment to start looking for your next home!
If you are considering making a move, I could provide you with a Comparative Market Analysis. My Home Search Wizard automatically e-mails you daily any listings that meet your search criteria. Please visit my website if you would like further information.
