What is a buyer’s market?

A buyer’s market is a period when there are more homes or more supply in the market, than buyers or demand. This allows buyers to be pickier and have more negotiating power on things like the purchase price as well as negotiating for the seller to pay for things like your buyer’s agent commission. 

In a buyer’s market, sellers may offer incentives or be more willing to negotiate on price, closing costs, or repairs. Keep an eye out for these concessions as they indicate a shift in bargaining power.

How to know if you are in a buyers market?

To determine if you’re in a buyer’s market, look for these key indicators:

1. Increased inventory: If you notice a growing number of homes for sale and a wider selection, it’s a strong sign of a buyer’s market. More options typically mean less competition among buyers.
2. Stable or falling Prices: In a buyer’s market, home prices tend to be stable or decreasing. Watch for price reductions and homes that linger on the market longer than average.
3. Extended days on market: Homes taking longer to sell can indicate that buyers have the upper hand. If properties are staying listed for weeks or even months without selling, it’s a sign that buyers have more leverage.

What areas are good for homebuyers right now? 

We looked at the time on market, average home value, and relative price increase over the last year, and have identified the following areas as being particularly attractive to buyers vs. sellers. 

If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.