A Buyer’s Market refers to the supply and demand in the real estate market where the market experiences decreased value of property due to a decreased demand.
What factors cause a Buyer’s Market?
- When the real estate market experiences a decrease in property value, a buyer’s market is created. An example of a factor that would decrease property is a natural disasters such as earthquakes, floods, and hurricanes.
- When the market experiences an increase in available properties, there is an increase in competition among sellers causing a decrease in the market prices of available real estate. An example of a fact that would cause the market to experience an increase in available real estate is a new subdivision being built in a city.
- When there is a change in the economic climate causing short term decrease in interest rates or a trend of higher interest rates, a buyer’s market can also be created. When interest rates are higher, less people tend to buy houses which will cause a decrease in prices as more properties become available. When there is a short term decrease, buyers are given a competitive edge when purchasing real estate.
How to determine a Buyer’s Market?
- What time of year is it? During June to August is one of the most popular times to move, so it is more than likely going to be a Buyer’s Market.
- How many houses are available in the city you are looking at? If there are a lot available, it is more than likely going to be a Buyer’s Market.
- How many jobs are available in the city? If there are not a lot, then it will more than likely be a Buyer’s Market due to the decrease in economic development in the city.
- What is the history of property value of the city you are looking in? If the current market price is lower than the average price of the property in the past, then it is more than likely a Buyer’s Market.
For all of your real estate needs, please contact the Hornburg Real Estate Group at Keller Williams Realty at DallasFtWorthHomeSearch.net or (817) 264-7087.