When it comes to real estate transactions and investments, timing is as imperative as having the skills and knowledge to go about the deal. Whether you’re a seller or a potential buyer, you can’t make a final decision without considering the state of the real estate market, because the status of the market can greatly affect your returns. Before shopping for East Van houses for sale or having your condo placed in the Multiple Listing Service (MLS), the following are some factors you have to consider so as to gauge the competitiveness of the real estate market and determine if you’re in a seller’s or buyer’s market.
Number of Homes for Sale
As a buyer, you have a great negotiating edge when there are a lot of houses to choose from. A high number of homes for sale is usually indicative of a buyer’s market where one can find great real estate deals and motivated sellers who are very likely willing to work with the buyer’s terms. On the contrary, a low number of East Van homes for sale indicate a competitive real estate market wherein there are more buyers than sellers and you can’t be as selective when it comes to looking at homes. Such a shortage of homes for sale is in favor of sellers whose properties are in demand.
Rate of Sales
You know you’re facing tough competition when real estate sales are happening in a short span of time. Today you’re looking at a nice East Van house for sale in a listing, but tomorrow it’s sold and gone. A fast-selling real estate market is on the side of sellers who want to sell their homes fast and easy. Unfortunately for a buyer, it might be a challenge to determine if homes are selling quicker than the average rate. Therefore, it would be wise for potential buyers to consult with real estate professionals who are well-aware of market conditions. A real estate pro can help them decide which homes are good investments and which ones they should forego.
Sale Prices and Interest Rates
High sale prices and low interest rates are reflective of a competitive market that is ideal for sellers. Indeed, it’s a good time to sell when homes are being bought at their asking price and even more than their asking price. On the other hand, when there are low sales prices and buyers flood the market, interest rates may go up as a result. The real estate market need not be tricky and confusing as long as you’re working with an experienced real estate professional.
Are you in a buyer’s or seller’s housing market?, CNBC