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Buyer and Seller
Markets
Buyers’ Market
A buyers' market refers to a marketplace that
favors home buyers because more homes are listed than can be expected sell in
the near future. If, for example, 20 homes are listed in a neighborhood, and 5
were sold in the last month, the neighborhood has a 4-month supply of homes
for sale.
Sellers’ Market
Of course, the market can
– and does – change based on general economic conditions such as rising or
falling interest rates, or the local business climate such as a new company
opening nearby. If, for example, all 20 homes listed plus 5 new listings sell
within a few months, then the market has become a sellers' market, where buyer
demand meets or exceeds the house-for-sale supply.
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