Whether you're looking to buy your first home or considering putting your house on the market, you've likely heard the terms "buyer's market" and "seller's market." But what do these phrases actually mean—and how do they affect your strategy?
What is a Buyer's Market?
A buyer's market happens when there are more homes for sale than there are buyers actively looking. With higher inventory and lower demand, buyers have the upper hand.
What it means for buyers:
- More choices
- Less competition
- Better negotiating power on price and repairs
What it means for sellers:
- Homes may take longer to sell
- Prices may need to be more competitive
- Sellers may need to offer incentives (like paying closing costs)
What is a Seller's Market?
A seller's market occurs when there are more buyers than homes available. Inventory is low, demand is high—and that puts sellers in the driver's seat.
What it means for sellers:
- Homes can sell quickly
- Offers may come in above asking price
- Bidding wars are more common
What it means for buyers:
- Fewer homes to choose from
- You may need to act fast and make strong offers
- Waiving contingencies or offering above asking may be necessary
How to Tell Which Market You're In
Look at these indicators:
- Days on market: Homes selling quickly = seller's market
- Inventory levels: Low inventory = seller's market
- Price trends: Rising prices = seller's market
- Multiple offers: Common = seller's market
Why This Matters
Knowing whether it's a buyer's or seller's market helps you form a smarter strategy.
- Buyers: In a seller's market, get pre-approved and be ready to move quickly
- Sellers: In a buyer's market, make sure your home is priced well and shows beautifully
Markets shift. Whether you're buying or selling, understanding current conditions can help you make more confident decisions.
Ready to understand your local market? Find a qualified broker who knows your area inside and out.