Are We in a Buyer’s Or a Seller’s Market?

With the traditional moving season inching closer and closer, now’s the time to start taking a hard look at what’s going on in the housing market, especially if you’re planning to buy or sell this season. Whatever your situation, it helps to know exactly what you’re walking into. Knowing whether you’re in a buyers’ market or a sellers’ market can help you decide what your course of action will look like. What’s a buyer’s market? When there are more houses on the market than there are buyers (more supply than demand), you end up with what experts call a buyer’s market. With all the competition, it falls to sellers to make their properties stand out. For buyers, that means lower prices, more incentives, and better deals. What about a seller’s market? A seller’s market is pretty much the exact opposite—that is, when there are fewer houses on the market than there are buyers looking for them. This is the ideal situation for sellers. It means their property is in demand, and that they’ll be able to ask higher prices. Okay, which one are we in? This is the tricky part. With a country as large and diverse as the US, there isn’t really one single market to keep tabs on—there are thousands. Depending on where you live or where you’re moving to, you could easily find yourself in either situation, or even both. According to Zillow’s rankings, many of the top 10 buyers’ markets are located in Florida cities, with several more in Pennsylvania, Ohio, Illinois, Michigan, and Rhode Island.  In contrast, 6 of the top 10 sellers’ markets are on the West Coast—4 in California, with 1 each in Washington and Oregon. Major metro areas in Colorado, Texas, Tennessee, and Massachusetts also make the list. So what does that mean for me? If your area isn’t on Zillow’s list, there are other ways to find out how your housing market is doing. Just driving around and keeping an eye out for for-sale signs should give you an idea of how many homes are on the market, and any active local realtor should be able to give you a more comprehensive picture. Depending on your findings, you may have to adjust your strategy. For instance, if you’re buying a seller’s market, be prepared to make a decision fast, and if you’re selling in a buyer’s market, don’t be surprised if your home sits on the market for a while.