What is a Seller”s Market? In this video, I discuss the difference between a Buyer and Sellers Market as well as whether 2020 going to be a buyers or sellers market?
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Definition of a Sellers Market
A Sellers Market is one that favors Sellers over Buyers much like the one we have been experiencing in California for the last 7 to 8 years. A Sellers Market is generally caused by a supply and demand issue, where demand exceeds supply. In a Seller’s Market, prices tend to move up to sideways because of the amount of Buyer Demand, this causes home prices to continue to increase which benefits Sellers.
During a Seller’s Market, buyers generally have less room to negotiate price because of buyer demand, assuming the home is priced at fair market value.
Is 2020 going to be a buyers or sellers market?
Based on the current economic metrics like the Unemployment Rate, GDP and Consumer Confidence, the overall market seems to be pretty stable in a good position. This coupled along with a shortage in inventory and low interest rates, tells me that 2020 will likely be a Sellers Market.
During the recession, there were a lot of restrictions put on home builders which has made the inventory issue even more prominent which is going to take years to change. Assuming nothing crazy happens economically, the market should continue to favor Sellers for the foreseeable future.
How do you determine if it’s a buyers or sellers market?
The best way to determine a buyers or sellers market is to look at available homes for sale (inventory). If inventory is low, it is likely a sellers market whereas if inventory is high and homes are sitting longer on the market, then it’s likely a buyers market.
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Other videos you might find helpful:
Is NOW a Good Time to BUY or SELL? September 2019 Real Estate Market Report – https://youtu.be/nFSZaVURRjY
First Time Home Buyer MISTAKES | #1 Mistake First-Time Home Buyers Make | First Time Home Buyer Tips – https://youtu.be/wtXMl5hUTZM
Is the Real Estate Market Crashing? – https://youtu.be/le_F5MYCwZ0
1st Step in the Home Buying Process – https://youtu.be/tMQap-MV5_I
Appraisal vs Home Inspection – What’s the Difference? – https://youtu.be/cwjokWbr1Go
Do I get my deposit back if I cancel escrow? –https://youtu.be/0RMy9iNTu54