Real estate is a cyclical business. For months or even years conditions may
favor the buyer. Then, over time, the pendulum will swing the other way and
circumstances will favor the seller.
The market forces of supply and demand help determine whether it is a buyer’s
or seller’s market. When the supply of homes is high, the sense of urgency for
buyers lessens. Because there are more homes to choose from buyers can be
more selective and may wield more power during the negotiations. In turn, sellers
may need to lower their asking prices to attract consumer interest.
Conversely, in a seller’s market, inventory is lower. Buyers have fewer options
and the sense of immediacy is heightened. As a result, the number of bids on any
given listing may increase, asking prices might rise, and buying terms may become
more stringent.
A second factor that influences the market is mortgage interest rates. High rates
mean it costs buyers more money to borrow from a bank or lender. Higher rates
can lessen consumer demand. On the other hand, when rates are lower and
buyers feel they can get more for their money it can propel them into the real
estate market.
If you are considering buying a home it is critical that you determine whether it is
a buyer’s or seller’s market. Equally important is to remember that real estate is
local. Different factors could make it a seller’s market in one city and a buyer’s in
another. To help you determine which conditions prevail examine how long listings
are staying on the market, compare that rate to six months ago, and look at
whether homes are selling above or below asking price.
At Century 21 Lindsey & Pauley we are experts in our local marketplace. Our
insight will be key. Remember the market climate – buyer or seller - will ultimately
influence your decision when to buy and at what price and terms.
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Copyright © 2004-2006 All Rights Reserved
CENTURY 21 Lindsey & Pauley
1745 Hwy 53 West · Jasper, Georgia 30143
Office: 706-692-3533 · Fax: 706-692-2366
info@lindseyandpauley.com
2004 CENTURY 21 Real Estate Corporation © and sm trademark and servicemark of
CENTURY 21 Real Estate Corporation. Equal housing opportunity.
