What’s going on in the real estate market?
Is it a seller’s market, a buyers market, or a transitional/balance market?
We hear the news media saying it’s a buyer’s market, but what does that really mean?
I got a phone call on Friday from an “investor”, telling me, “It’s a buyer’s market so your sellers are going to have to let go of their property at a low price. How low can they go?”
I responded back, “Oh. Ok. Well, we just listed that property yesterday and it’s listed for $259,890, so …that’s the price that they are asking for.”
Investor, “Yeah but it’s a buyer’s market.”
This jerk wants to negotiate before even seeing the inside of the property! I’m sure there are a lot of jerks out there right now preying on people who are desperate to sell, but I never knew that a buyer’s market was defined as home seller’s getting taken advantaged of and giving away their home.
Many industry experts, Truth about Real Estate and Dr. Jack C. Harris, an economist with Texas A&M University Real Estate Center, define markets as the following:
-
Seller’s Market
-
Existing inventory of 6 months or less
-
-
Balance Market
-
Existing inventory of 6-12 months
-
-
Buyer’s Market
-
Existing inventory of 12 months or longer
-
Keeping in mind that real estate is local, there are many communities in Dane County that are actually in a Balanced Market. I have been looking at each community separately and will be publishing that data to The Gardyn soon. By the way, Days on Market has nothing to do with a Buyer’s Market or Seller’s Market.
There are always two different market’s taking place in a Buyer’s Market.
Related Posts:
Is Now A Good Time To Buy Real Estate?
5 Things A Seller Can Do To Look Better
6 Comments
September 11, 2007 at 7:59 am
Well stated. It’s amazing how a so called “investor” seems to be so in tune with the “market” yet proves they really aren’t. You are right that all real estate is local. Within a short distance its possible for find a balanced market, a buyers market and even a sellers market-even in today’s real estate economy. Thus the importance of truly being tuned in to the market your house is located within or, if you’re a buyer, the house you’re interested in.
September 13, 2007 at 10:45 pm
[...] Real Estate Market (and surrounding communities) Jump to Comments I mentioned in a blog post early this week that I would be sharing what Madison area communities are in a Seller’s market, Buyer’s [...]
October 15, 2007 at 11:34 am
[...] Buyer’s Market, Seller’s Market or Balanced Market [...]
November 7, 2007 at 10:55 pm
[...] pretty impressive!!! It was a hot seller’s market in Madison and a great time to make a quick sale. Right now, today, in the present, the market is [...]
January 23, 2008 at 7:02 pm
Hello everybody,
Is everything fine? How are you?
——————
invention
March 3, 2009 at 4:31 am
Hello webmaster
I would like to share with you a link to your site
write me here preonrelt@mail.ru