Like any other market, real estate market also works with the simple logic of what goes up comes down. At any given time, a certain commodity or service can be either on its way up or on its way down in the market. In real estate, however, there is a different phenomenon. The market can be up, down or both. This perspective depends on whether a person is a buyer or a seller. The direction in which the market swings, that is the name given to the market. It is called a buyer’s market when the market is swinging in the direction of the buyer. This happens when there are more houses for sale in the market, than there are buyers. Normally, this is measured by the rate of sales. It is a buyer’s market, if an average home in the market takes over six months to sell. It also includes over six months of inventory on the market, which also makes it a buyer’s market.
From the view of the seller, the situation is that a prospective buyer looks at a variety of different houses before choosing one. The sellers have to work hard at selling their houses and so, in a buyer’s market, homes take longer to be sold and consequently the prices fall. A normally well-earning seller then has to bear the brunt of a falling market, while the buyer enjoys the upper tires of such a market situation.
There is a very common belief that the winters are the peak season for the market, converting it into a buyer’s market. But it is now known that there are fewer buyers in the winter season too, meaning that winter is not actually the peak time. The number of sellers is also relatively less in the winter months. This happens when there are fewer homes being listed, and they are not given a comfortable time for considerations by the realtors, leading them to be aggressively marketed. This means that their standing in the market is very high.
Without considering the season, a buyer’s market exists simply when there are more homes than the buyers, leading to a fall in the prices and subsequently increased time in the market for a home to be considered. There have been incidences where the buyer’s markets have lasted for years, whereas some are short-termed and quickly vanish. A true buyer’s market enables its buyers to obtain perks. The seller then uses things and services that are not normally conveyed with the sale of a home as bargaining tools. Sellers, in such a situation, may have to pay for a majority of the closing costs.
For a seller in a buyer’s market, who has owned the house for a long duration of time, there maybe a scope for a profit, due to the equity that has been built over time. However, the market is ever changing and needs to be monitored with great care to pinpoint the trends. Harji Realtors is one of the leading real estate agents in the region of Chandigarh, Mohali and Kharar. For more information on great deals in Sunny Basant Enclave and the best Plots in Sector 117 check out our website