Sugar Blossom

When It Turns Into a “Buyer’s Market?”

A buyer’s market occurs when there are more sellers than buyers. It’s characterized by buyer’s being able to dictate terms and price to sellers.

If homes are taking longer and longer to sell (often six months or more), it’s indicative of a buyer’s market. If the inventory (the num­ber of listed but unsold homes) is six months or more and increas­ing, it’s also indicative of a buyer’s market. Again, check with your local real estate board for statistics in your area.

If you buy when prices are going down, a buyer’s market, you may initially think you’re getting a great deal. However, later on you may ?nd you can’t sell for what you paid. (Millions of Americans found themselves in this unfortunate position during the real estate reces­sion of the mid 1990s.) You may discover that after commission and closing costs, it will cost money out of pocket to sell!

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