How Does the Market Impact How Much My Property is Worth?
The real estate market is always in flux, and buyer interest always has a direct impact on what a home can sell for. You've probably heard the terms buyer's market and seller's market as a means of indicating who the market is in favour of. But it's important to understand what these supply and demand terms actually mean:
- Buyer's Market - A buyer's market means there are more houses for sale than demand, creating less competition and urgency for buyers.
- Seller's Market - A seller's market occurs when demand outweighs houses for sale, creating higher competition and urgency for buyers.
Another lesser heard term is a "balanced market", in which buyer demand and seller offerings are fairly equal.
Any market scenario will impact the value of a property, but within reason. That’s why, in any market, it's critical to have a well-priced home to ensure it sells quickly and for the most amount possible. A house that’s priced too high won't even be seen by buyers, while one that’s priced too low will sell fast but at your profit's expense.