Most of our clients understand that we’re in a seller’s market here in Southcentral, but many don’t know exactly what that means. So, today we’ll take a look at the nuts and bolts of both sellers’ and buyers’ markets.
Seller’s markets are characterized by:
- A depleted inventory of homes for sale.
- Escalating home prices.
- Multiple offers on homes in good shape and located in decent areas.
- Buyers have little bargaining power.
- Depleted Inventory
The most common cause of low inventories in a real estate market is a combination of few homeowners listing their homes and strong buyer participation in the market. It’s a matter of supply and demand.
Escalating Home Prices
The economic principle of supply and demand works…