Tuesday, June 11, 2019 / by Robyn Burley
Mastering the Market = Mastering Your Move
The real estate market is in a constant state of flux
It is important that you understand what the markets doing now BEFORE you decide to buy or sell so you can be prepared to make rapid decisions when the time comes.
Mastering the Market is dependent upon answering one main question:
→ What type of market are you entering into?
There are 3 types of real estate markets:
→ Buyers Market
→ Sellers Market→ Balanced Market
So how can you identify the current type of real estate market and how can the type affect your decisions?
1. Identifying a 'Buyers Market'
If you are a buyer looking to a purchase home in a buyer's real estate market, this is the best financial market for you to buy in… but why?
It is because there are more homes available for sale than there are buyers to purchase them.
In a buyers market, sellers are often more motivated to negotiate in order to make the sale.
This means you can probably buy a home for less than it was advertised for.
→ Signs to identify a Buyers Market:
1. There are more homes on the market now than previous months
2. Homes are not selling quickly (across all price ranges)
3. Average listing price has decreased month by month
2. Identifying a 'Sellers Market'
If you are a homeowner who wants to sell a house in a seller's market, this is the best financial market in which to sell… but why?
It is because there are more buyers looking for homes than there are homes available on the market.
This means you can probably sell your home quickly and for more than you asked for it!
→ Signs of a Seller's Market
1. There are less homes on the market now than previous months.
2. Homes are selling quickly (across all price ranges).
3. Average sale price has increased month by month.
3. Identifying a 'Balanced Market'
In the last decade, we have not really experienced balanced markets in most of Southern Ontario.
In a balanced market, the scales don't tip in either direction, meaning the market is normal without experiencing volatile swings.
→ Signs of a Balanced Market
1. There are the same amount of homes on the market as previous months.
2. Homes are selling at an average pace (across all price ranges).
3. Average sale price has plateaued month by month.
**The kind of market you are entering into can be different depending on the price range of the home you are interested in buying or selling
Our goal here is to illuminate the ins and outs of the real estate market, as well as the transaction process, so there are no surprises along the way.
If you are interested in learning more about how to Master the current Real Estate Market, or would like a copy of our S.M.A.R.T Method Guide to help you navigate through the real estate process, we are here to help!
Send us an email, give us a call or follow us on social media!