Real Estate: 4 Explanations For A Seller's Market

The nature and historical perspective of the real estate housing, is that there are times when it might be classified as being a Seller's Market; other times when there is a Buyers' Market; and other times, when it is somewhat neutral. The determining, underlying factor, is generally based on the economic concept, of supply and demand! Simply stated, when there are many houses available, and not so many buyers, there is a Buyers' Market. When there are, seemingly, more people seeking homes, than houses listed for sale, there is a Seller's Market. When it is somewhat neutral, we are in a neutral scenario. This article will attempt to identify, and simply explain, some of the contributing factors, which might lead to what we consider a Seller's Market

1. When there are more buyers, than houses listed: This condition is generally referred to as there being a limited inventory, because there are fewer choices, and more people looking, than available properties! Sometimes, this exists because of some sort of economic uncertainties, or reasons existing homeowners are resisting mobility, or relocation. There may also be an influx of potential purchasers, because of factors such as a somewhat positive - moving, economy, and/ or, historically low mortgage interest rates, etc.

2. Uncertain economy: When existing homeowners are somewhat uncertain about the future, they may resist the temptation to sell, and then be in a position, where they must move somewhere. Uncertain economic conditions include: fluctuating currencies and/ or interest rates; uncertain employment, and/ or fear of possible, significant changes; and other unpredictable conditions.

3. Employment/ unemployment/ under - employment: There are times when certain segments of the economy are out - performing other parts/ components. Uncertain employment conditions, in the perceptions of buyers and sellers, often create an unbalanced real estate market! While those nearing retirement may pay less attention to employment possibilities, those still in the job market, must consider convenience, location and employment possibilities, if they are considering selling their homes.

4. Limited mobility options: Before someone will commit to listing their homes, or decide to be put into a position, where they will need to relocate, they must feel confident, in their plan, and their personal future. How solid is the job market, in their field, in an area where they might consider relocating to?

There are many factors which impact the real estate market, and whether buyers, or sellers, have the upper hand, or whether it is somewhat neutral and/ or balanced. Which type of scenario exists, however, will often impact availability, pricing, etc.
Source by Richard Brody