Pay attention to market conditions – they will have a definite impact on your position as a buyer. The table below lists the influences that different conditions may have on you. Impact and expenses may vary, depending on your area.
|
Market conditions |
Characteristics |
Implications |
| Buyer’s market – The supply of homes onthe 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. |
| Seller’s market – There are more buyerslooking 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. Conditionaloffers may be rejected. |
| Balanced market – The number of homeson the market is equal to the number of buyers. | Sellers accept reasonable offers. Homes sell within anacceptable time period. Prices are generally stable. | More relaxed atmosphere. Reasonable number of homes to choose from. |
Source: Royal LePage Canada