Don’t let your Real Estate Agent tell you this lie!…
I’m sure you have heard someone say, “Now is the perfect time to sell your home! It is a seller’s market!” But almost just as frequently I hear agents tell the general public, “Now is the ideal time to buy. It’s a buyer’s market!”
So what is it? Who is lying? It can’t possibly be both a buyer and seller’s market!… right?
First of all, what classifies a buyer/seller market?
It all boils down to the timeless economic principle of supply and demand.
A buyer’s market is when there is more supply than demand. This leads to seller’s accepting lower prices, offering incentives, and putting more effort into selling the home (i.e. staging, advertising, etc). In this market there is usually plenty of homes for the buyer to look through and this gives the buyer the ability to be more picky.
Conversely, a seller’s market is when there is more demand than supply. This is when buyers fight over the few homes on market leading to bidding wars, which ultimately translates to more money for the seller. Homes can be sold in hours rather than weeks!
Those who argue that it is a seller’s market point to the fact that there appears to be a higher demand for homes than supply.
Those who argue that it is a buyer’s market talk incessantly about the low interest rates that give consumers the ability to buy more house at a much better monthly payment (and in the end saving hundreds of thousands of dollars in interest). They also talk about market trends and how quickly you can build equity by buying at the right time (such as now).
So in San Diego Mid-May 2015, what kind of market are we looking at right now?
I have analyzed the market trends and current listings/closings, but nothing paints a clearer picture than my personal experience the past 30 days…
This month my team has done 20 deals.
ALL of my listings have sold for OVER asking price. Not only did I wow my clients with more money than they were expecting as far as selling price but some sold within the first 24 hours (and all sold within 30 days of being listed). This would definitely help support the argument for seller’s market.
However, for ALL of my clients who have bought in the past 30 days I have negotiated a sell under list price, even in multiple counter offer situations. On top of that I was granted long lists of repairs, received termite clearances, and seller credits toward closing costs. These are all indicators of a buyer’s market (or a fantastic agent LOL).
So, if someone were to ask me if it is a buyer or seller’s market, I would say, “Both!”… as ridiculous as that may sound.
But does it really matter? Who cares if it is a buyer or seller’s market! The most important thing is having a great agent you trust, who will get YOU the most for your money, in the time frame YOU want, with the least amount of hassle.