Buyers or sellers market?

 

Exterior 2

My recent 2 bedroom listing that went under contract in 3 days. We had 2 offers.

On Saturday, I tweeted an article from The Washington Post titled "Buyer's Market for Houses is Fading." This declaration led to a frenzied back and forth with one of my twitter followers about whether or not DC ever had a buyers market.  


His point was DC never had a buyers market because prices have increased year over year for the last few years.  My point was DC had a buyers market in '10 and '11 and switched to a sellers market at the beginning of this year.  We agreed to disagree but in hindsight, my statements were correct.  Price increases aren't what designates a buyers or sellers market.  

So what is the definition of a buyer's market and a seller's market?  And why should you care?  

A buyers market is when there's more sellers than potential buyers.  A sellers market is when there's less sellers and more potential buyers.  

For the first time in years, the DC market has reverted to a sellers market.  The article on Saturday noted "in Washington and nearby suburbs, listings are down 28% reports Redfin, a national online brokerage."  

What does this mean for you?  If you've been thinking of listing your home, it's a great time to do so.  You still need to stage and price your property accordingly but things are selling and selling fast.  Often, there's multiple offers.  

If you're a buyer, be prepared to make fast decisions.  If a property is well priced and in a desired location, bidding is fast and furious. You should be pre-qualified. You should have a substantial down payment.  You should be prepared to potentially pay list price or over list price.  

Welcome to real estate 2012!  

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1 Comment

  1. the books go unread, the programs unwrapped and you never see them post another comment. It is this rush of passion combined with the sudden disappearance of interest that has caused me to call these investors the “Shooting Stars”.

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