When getting ready to sell a home, it’s important that real estate market conditions are taken into account. Real estate market conditions can help someone price their home appropriately, reducing the time it is on the market while getting the best possible price for it. Conditions are generally influenced by things like the job market, consumer confidence and available interest rates.
While a Comparable Market Analysis can tell people how much homes similar to their own are selling for, these reports do not take into account how quickly or at what prices homes are being bought in a particular area. Depending on market factors, an individual will have a home in a buyer’s market or a seller’s market, and knowing what type of market someone is in is key to pricing a home. Buyer’s markets are those where there is a large number of homes that have been on the market for over seven months, and prices for homes tend to be lower. A seller’s market is one where prices of homes are higher, and houses stay on the market for shorter periods of time.
It is important to note that markets are not static, and a home’s price may need to be adjusted if conditions change. Something like an increase or decrease in mortgage interest rates or employment opportunities can dramatically alter the market in a short period of time. An area may also have both buyer’s and seller’s markets; homes in one neighborhood may be selling quickly while another neighborhood is experiencing a slump in sales.
