A classification of how real estate market is performing.
As Vancouver and Toronto real estate market gets the national media coverage, you often heard the terms Balanced Market, Buyer’s Markert and Seller’s Market. What are they? And how does it affect my purchase or selling decision of a home? Let’s explore these classifications.
There are fundamental factors that influence the real estate markets around the world, and it’s no exception here in Vancouver. They are immigration, migration (from other provinces), mortgage interest rates, jobs, economy, investments, new developments, available buildable land, inflation and local to world politics. These elements significantly increase or decrease housing supply and demand, subsequently lead to price fluctuations.
What is a Seller’s Real Estate Market?
A seller’s market is when there is high demand for housing supply but not enough MLS Listing to meet this shortage. In this condition, you will encounter more multiple offers situations (Bidding wars), pay over asking and not much to negotiate other than the completion and possession dates. Fear of losing out buyers willing to take the risk and write Subjects free offers all in the hopes of winning the bid.
What is a Buyer’s Real Estate Market?
Contrary to the Seller’s Market, a buyer’s market is when the demand for real estate is low, and more sellers are putting their home up for sale. Virtually, not enough buyers too many sellers. In such market conditions, buyers have plenty of choices, negotiate prices, and less competition. You might be the only offer on the table, and the seller is willing to accept your terms.
What is a Balanced Real Estate market?
A balanced real estate market is when buyers demand, and sellers are putting their home on the market are on par. Also, the price is much stable. You’ll find such stable markets in rural and small towns in Canada and America.
A REALTOR® is the first to notice whether we are in a buyer’s or seller’s market – our business is helping sellers and buyers with their real estate needs and any change in the market affects how we work with our clients. That’s why we are continually monitoring neighbourhood market trends to national.
Before buying or selling a home in Greater Vancouver, feel free to reach out to us via email or by phone for a professional opinion and complimentary Market Analysis. Your listing price, negotiations and expectations will all be affected depending on whether it is a buyer’s market or a seller’s market.