Buyer’s Market in Real Estate
You’re probably heard people say “it’s a buyer’s market”, but what does that have to do with your New Orleans home purchase or sale?
Everyone always wants to get the best price for a home. But the definition of best price is completely dependent on which side of the sale you’re sitting. Sellers want the highest price. Buyers want the lowest price. In a buyer’s or seller’s market, someone has the advantage.
Who has the advantage in a buyer’s market?
As the name implies, it’s the buyer. When supply is larger than demand, buyers have more options and are less likely to pay a premium for a property. Homes take longer to sell. It’s a great situation for buyers, because they are holding all of the cards and can choose to just move on to another property when there are plenty of them to choose from.
What defines a buyer’s market?
In real estate, agents usually will call a buyer’s market when the inventory of homes is more than 6 months. In other words, if all of the available homes for sale would would take longer than 6 months to sell at the current sales rate, it’s a buyer’s market.