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Understanding Market Conditions

Market Conditions	Characteristics	Implications
Buyer's Market
The supply of homes on the market exceeds demand.	High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop in this type of market.	Your home may take longer to sell. Less negotiating of selling price.
Seller's Market
The number of buyers wanting homes exceeds the supply of homes on the market.	Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase.	You may have to pay more. Make decisions quickly. Conditional offers may be rejected.
Balanced Market
The number of homes on the market is equal to the demand or the number of buyers.	Demand equals supply. Homes sell within an acceptable time period. Prices generally stable.	More relaxed atmosphere. Buyers have a reasonable number of homes to choose from.