For years, the housing market has favored sellers. With limited inventory and high demand, buyers often faced bidding wars and steep competition to secure a home. However, inventory is on the rise, and shifts are happening in many areas. So, is the market finally balancing out? And does this mean buyers will have an easier time?
What Defines a Buyer’s or Seller’s Market?
Market conditions are determined by the balance between available homes and buyer demand. This dynamic dictates who holds more negotiating power:
Seller’s Market: When there are more buyers than available homes, sellers have the advantage. This results in rising prices, multiple offers, and homes selling quickly—often above the asking price.
Buyer’s Market: When inventory surpasses buyer demand, sellers must compete for buyers. This can lead to price reductions, concessions, and longer days on the market, giving buyers more leverage.
The chart below, based on data from the National Association of Realtors (NAR), illustrates how inventory levels impact the market over time.
Navigating the Market: Why an Agent Matters
Understanding whether you’re in a buyer’s or seller’s market is key to making informed decisions. A local real estate agent provides critical insights into current market trends, pricing strategies, and negotiation tactics to help you succeed—whether you’re buying or selling.
For buyers: An agent can identify areas where inventory is rising, giving you more options and negotiation power.
For sellers: A professional can help you price competitively and strategize to attract serious buyers, even as the market shifts.
Bottom Line
With rising inventory levels, the market is showing early signs of balance. However, conditions vary depending on location.
Are you wondering whether buyers or sellers hold the advantage in your area? Let’s connect to analyze the latest trends and plan your next move strategically.
DONNA BROWN
Need a Realtor®? Call or text me today, 949-491-2446
