Market Conditions
Pay attention to market conditions – they will have a definite impact on your position as a buyer. The table below lists the influences that different conditions may have on you. Impact and expenses may vary, depending on your area.
| Market conditions | Characteristics | Implications |
| Buyer's market The supply of homes on the market exceeds the demand. |
High inventory of homes. Few buyers compared to availability. Homes are on the market longer. Prices tend to drop. | More time to look for a home. More negotiating leverage. |
| Seller's market There are more buyers looking to buy a home than there are homes on the market. |
Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase. | May have to pay more and make decisions quickly. Conditional offers may be rejected. |
| Balanced market The number of homes on the market is equal to the number of buyers. |
Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices are generally stable. | More relaxed atmosphere. Reasonable number of homes to choose from. |