Why Do You Think They Call It A Buyer’s Market?
March 28th, 2008 Categories: Real Estate News
It Is Called A Buyer’s Market For A Reason
Real Estate goes through its cycles. All areas go through a growth phase called a seller’s market this is when there are more buyers than sellers. Normally it is the best time to sell, the problem is then you have to buy something else.
After a seller’s market it shifts to an equalized market where there are an equal amount of buyers and sellers. This period doesn’t last long.
Then there is a shift to a buyer’s market, this is where there are more sellers than buyers. The shift from a seller to equal then to buyer’s market happens faster than most people realize. It seems to happen in a flash. What happens is the momentum of the seller’s market carries itself through the shift into an equal market then the buyer’s market seems to happen over night.
What surprises me the most is people get all freaked out. The market is bad and you shouldn’t buy. Yet people will buy when prices have reached their maximum level and beyond. Then when there are deals out there they sit tight makes no sense to me.
If you are considering a trade up it is the perfect time. Those that have bought a starter home 5-7 years ago are in the sweet spot. The entry level homes are still selling well. Then as you cross over to the next price point that’s where the deals are.
Like the headline said. Why do you think they call it a buyers market, it is time to buy.
The laws of investing have always been the same, buy when inventory is high and sell when inventory is low.
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