Understanding Buyer’s and Seller’s Markets


While any time is a great time to buy or sell a home, knowing whether market conditions favor buyers or sellers will help you to improve your own position and to navigate your transaction more easily.

A seller’s market takes place when financial conditions are positive. New employers are coming to town, there are plenty of jobs, workers are receiving bonuses and raises, and there’s a general sense of optimism that encourages people to buy their first home or move up to a bigger, better home. This creates demand for homes, higher home prices and often a shortage of available homes for sale. Homes don’t last long on the market, and soon, there are shortages for entry-level homes and other price points.

A buyer’s market reflects a receding economy. Employers stop hiring and salaries stagnate. If major employers exit the market, workers have trouble finding other employment. Confidence wanes, and sellers find that there’s less demand for their homes. Soon, inventories of homes for sale increase, bringing prices lower. A buyer’s market means buyers are cautious and expect sellers to sweeten the pot by presenting updated homes in premium condition.

Buyer’s and seller’s markets can be as localized as a single street within a neighborhood, a zip code, or a suburb. It’s all about the economy’s impact on demand.

Check out how the market is trending in your neighborhood: http://dfwstats.weknowtx.com/BHHSPenFedRealtyTexas/


Are you in a buyer’s or seller’s market? If you’re not sure, our PenFed Realty Texas agents can show you the sales trends for your area and price range.