What is a Buyer's and Seller's Market?

A buyer's market and a seller's market refer to the conditions of a real estate market or a broader economic market, indicating whether the advantage lies with the buyer or the seller.  

Buyer's Market:

• Definition:

In a buyer's market, there are more properties for sale than there are buyers looking to purchase. This typically results in a situation where buyers have more negotiating power because sellers are competing for a limited number of potential buyers.

• Characteristics:

High inventory of available properties.Properties may stay on the market for an extended period.Prices may be more negotiable as sellers are motivated to attract buyers.

Seller's Market:

• Definition:

In a seller's market, the demand for properties exceeds the supply. There are more buyers than there are suitable properties available for purchase. This gives sellers more negotiating power as buyers compete for a limited number of listings.

• Characteristics:

Low inventory of available properties.Properties may sell quickly, sometimes resulting in multiple offers.Sellers may receive offers close to or even above the asking price. These terms are commonly used in real estate, but they can also be applied to other markets. For example, in the job market, a "buyer's market" would mean there are more job opportunities than qualified candidates, giving job seekers more negotiating power. Conversely, a "seller's market" in the job market would mean there are more qualified candidates than available jobs, giving employers more negotiating power. ​

Understanding whether it's a buyer's or seller's market is crucial for both buyers and sellers to make informed decisions about pricing, negotiation strategies, and timing in their respective transactions.