Data Source: Greater Boston Association of Realtors
So if housing inventory is measured in months of supply where less than 6 months is considered a seller's market and greater than 7 months is considered buyer's market, what are the differences between and features of the two different markets?
A sellers market is when demand exceeds supply, or there are more would-be homebuyers than there are homes for sale. A feature of a seller's market is multiple buyers interested in a single property, resulting in bidding wars. A sellers market is the perfect time to sell a property as you could garner a sale price thats higher than your listing price, or at least more than your bottom line.
- If youre looking to buying a home in a sellers market, be aware that the seller has the advantage. If other buyers are interested in the same property youre making an offer on, trying to get a lower sale price probably wont work to your advantage. In fact, you could lose the opportunity to purchase the property altogether if a competing buyer makes a higher offer.
A buyers market is when the supply of homes for sale exceeds demand, or the number of buyers seeking to purchase homes. If youre a would-be homebuyer, a buyers market is the ideal time to make your move.
- If youre a seller in a buyers market, your property may remain on the market longer until youre able to secure a buyer due to the large number of available properties for sale. Also you may have to lower your listing price, or make other concessions in order to close your deal.
Low Boston Area Condo Inventory Bottom Line
If you are one of the many would-be home buyers/sellers in the Boston area who is unsure of the current state of the market and would like to know more about conditions as well as your options, please call upon me and the Unit Realty Group team. We can expertly help you!