How market conditions will affect what you pay for your home

 

The real estate market is always changing. It helps to understand how market conditions can affect your position as a Buyer. A Royal LePage Team Realty Sales Representative can provide you with current real estate market conditions and explain how this will impact on your purchase.

Market Conditions Characteristics Implications

Buyer’s Market:
The supply of homes on the market exceeds demand, (the number of buyers wanting to buy a home) High inventory of homes: Fewer buyers compared to availability. Homes remain on the market longer. Prices tend to drop in this type of market. A home may take longer to sell. The buyer has better negotiating leverage with regards to selling price and terms.

Seller’s Market:
The number of buyers wanting homes exceeds the supply or number of homes on the market. A smaller inventory of homes is available to the buyers. Homes tent to sell quickly. Prices usually increase. The seller may have more negotiating leverage and obtain a higher selling price for their property.

Balanced Market:
The number of homes on the market is equal to the demand or number of buyers. Demand equals supply. Homes sell within an acceptable time period. Prices generally stable. More relaxed atmosphere. Buyers have a reasonable number of homes to choose from.

For more information, please contact Kim Vo at 613 831 9287.