Question: Is it a Seller's Market or a Buyer's Market?
Definitions*
Buyer's Market: A market which has more sellers than buyers. Low prices result from this excess of supply over demand. also called soft market. opposite ofseller's market.
Seller's Market: A market which has more buyers than sellers. High prices result from this excess of demand over supply.
One way that professionals judge the market is to evaluate the absorption rates. The definition of absorption rate is:
"The rate at which properties are able to be leased or sold in a given area."
Another way of looking at it is "How many months supply of houses are on the market right now?" Click the link below to see Absorption Rates for existing homes and new construction in Fayetteville.
Take a look at the chart above. It shows the relationship between the rate at which houses sell and the type of market we are in. As you can see, the closer the pendulum swings to 0 months (houses sell as quickly as they are listed), the more it is a seller's market. The more the pendulum swings towards 12 months (or even beyond that) the more it is a buyer's market. Many experts believe that when absorption rates are at 6 months, the market is balanced. It is important to realize that the market may change very rapidly, and the transition between a seller's market and a buyer's market can happen in a very short period of time. Interest rates, seasons, employment rates, appreciation rates, and political activities can all have a dramatic impact, or a combined impact on the real estate market.
Whether you are a first time buyer or an experienced investor, you will find useful information to help you choose the perfect home, make an offer on it, negotiate and finance it, as well as information on mortgage rates, moving, and everything involved in making an smart real estate decision in today's market.
Please feel free to browse through this site to explore the Cumberland County communities of Fayetteville, Hope Mills, Raeford, Spring Lake, Stedman, and Eastover. This comprehensive online tool offers direct access to the latest properties for sale in the area. Featuring extensive community information, consumer links, school information, free reports, answers to commonly asked real estate questions, and more, youll find everything about real estate within one easy source.
If you currently own property and are thinking of placing it on the market, this site contains information to help you prepare your home for sale, select the right agent, price your home appropriately, market it effectively, navigate the inspection process, and receive a timely market evaluation.
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