What is a Buyer's or a Seller's Market?
In simple terms, a buyer's market is one in which there are more homes for sale than buyers purchasing homes. A seller's market means that there are more buyers looking for homes than there are homes for sale. As a buyer or a seller, you may not be aware of the current market in your area. This is why you should contact a real estate professional when you start thinking about making a move even if you aren't ready to list or look at homes.
If you're thinking of buying or selling your home, you may not be able to factor the state of the market in depending on your circumstances. If you are able to, whether it's a buyer's or seller's market could hugely impact your final price and the time involved in the process.
In a seller's market buyers are in competition for homes, which drives prices up. Buyers have less negotiation power when it comes to repairs and price reductions because the sellers can often choose between multiple offers. In seller's markets, a buyer's agent's advice when writing an offer is of utmost importance. A skilled buyer's agent will be able to get a feel for the seller and situation to write a competitive, winning offer without throwing away the bank.
In a buyer's market, sellers are more likely to have to make repairs and reduce prices because there are more homes for buyers to choose from. Selling in a buyer's market can result in longer days on the market, a lower final sales price and more work to get to closing. If you do find yourself needing to sell in a buyer's market, a listing specialist will help inform you of ways to help prepare for a quick sale. Pricing and presentation are extremely important for sellers in a buyer's market.
Are we here in the Milwaukee Metro area in a buyer's or seller's market? Most of our market is currently a seller's market. Some neighborhoods, cities and towns have a decrease in desirability or overflow of homes for sale which cause them to be an exception to their surrounding areas. According to Milwaukee Metro MLS in June of this year there were 4,903 homes on the market. While that still means a seller's market for us last year in June there were only 3,737 homes on the market, so supply was up 31.2% over last year. Prices have continued to rise. The median sales price increased 5.1% to $247,000.
We don't have a real estate crystal ball to predict what's in store for our market, but we do have trends and economic indicators to help determine what may happen. Historically, the midwest follows behind coastal real estate trends where in many places there is a balance in the market or there is a shift to a buyer's market. If you're thinking about selling, now could be a good time.
Lifetime Realty Group is always available for questions or consultations and we love to chat about the market. Reach us by email at firstname.lastname@example.org or give us a call at (262)696-9884.