How do market conditions affect my position as a buyer?
Some of the most common expenses are listed below. These expenses may vary, depending on your area.
| Market Conditions | Characteristics | Implications |
|---|---|---|
| Buyers Market The supply of homes on the market exceeds the demand | High inventory of homes. Few buyers compared to availability. Homes are on the market longer. Prices tend to drop. | More time to look for a home. More negotiating leverage. |
| Sellers Market There are more buyers looking to buy a home than there are homes on the market. | Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase. | May have to pay more and make decisions quickly. Conditional offers may be rejected. |
| Balanced Market The number of homes on the market is equal to the number of buyers. | Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices are generally stable. | More relaxed atmosphere. Reasonable number of homes to choose from. |
