The terms Buyers’ and Sellers’ Markets come from the number of homes on the market versus how quickly they are being absorbed. If the number of homes on the market would sell out (assuming no new ones came on to the market), in three months or less, you have a Sellers’ Market (home inventory is low, homes are in hot demand and selling quickly). If the inventory of homes on the market is over six months, you have a Buyers’ Market. The number of available homes is plentiful and buyers have a large inventory to select from.
Since the beginning of 2011, Coral Gables has seen a steady decrease of homes on the market, and we are right at the tipping point of reaching a Neutral or Stable Market. A stable market normally doesn’t last very long, but during that time, neither Sellers nor Buyers have a strong advantage over the other.
What does this mean to BUYERS?
- Fewer homes to choose from
- More competition from other Buyers
- “Low Ball” offers aren’t going to fly very far
- Keep a sharp eye on the listings for new and reduced properties and don’t wait too long to make an offer
- Know the inventory and market so as soon as a new property comes on the market that meets your criteria, be ready to act
- Interest rates are still low, take advantage of that and the market before the pendulum swings into a Sellers’ Market
What does this mean to Sellers?
- It’s a great time to list, you have far less competition from other Sellers
- While we are not in a Seller’s Market, we are in one much more favorable for Sellers than we have seen in the previous five years
- You still need to be priced right, presented well and marketed properly
- If you have been waiting to list until the market stabilizes, now is the time
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