The real estate market of the seller or buyer is determined by the correlation of real estate demand and real estate supply over a certain period of time.
In a Buyers market there is more supply than demand meaning there are more homes, apartments for sale than there are actual Buyers.
In a Sellers market there is more demand than supply meaning there are more Buyers than there are real estate for sale.
The factors underlying these cycles are: mortgage rates, inflation, employment, investment, construction of new buildings, new housing, immigration, government assistance programs (the Prima Casa Program) etc.
Seller's market: behaviors and effects
- there are more buyers than property for sale
- sellers demand higher prices due to rising demand
- sellers receive multiple offers simultaneously, having the power to negotiate a higher price
- properties are sold faster
For sellers is a fantastic moment to sell a real estate because they can get a higher price, than the real market price. Buyers, trying to get a lower price, could lose the opportunity to buy a property due to competition.
Buyer's Market: behaviors and effects
- we find that in the real estate market the number of houses and apartments is higher than the number of buyers
- prices tend to be lower due to rising supply
- buyers have more choice and can negotiate a lower price
- the real estate is for sale for a long time and the owners do not receive any offer
For buyers it is the best time to buy a new home because they have the opportunity to buy an apartment or a house at a very low price. On the other hand, sellers have to lower prices, in order to increase the building's competitiveness.
IMPORTANT!
Whether you own or are looking for a home, it is very important to do an analysis of the real estate market. It is essential to understand whether it is a seller or buyer's market, because it will help you save time, nerves and money, using a proper sale-purchase strategy.
It seems complicated?
Call to Acces Imobil real estate specialists. We can help you sell or buy an apartment or house at the most advantageous market conditions. Come to 12/1 Grigore Vieru av. or call 078 888 900.
Acces Imobil - with us you make the right choice!
