What is a buyers market?

It's the opposite of a sellers market. Don't know what that is? Check out this blog post It's the market a lot of us have been waiting for!!

There are more houses on the market than buyers that want to purchase. Demand is low, supply is high so home prices naturally have to drop in order to attract attention. Which means buyers save money and get great deals on houses!!

Here are a few factors that often affect long-term and short-term buyer demand:

• Interest rates trending higher – the amount of money people can borrow to buy a home is reduced because the cost of money is higher, naturally reducing the total number of potential buyers in the market. Home prices drop to meet the level of demand and buyers find better deals.

• Short-term drop in interest rates – can give borrowers a temporary edge with more purchasing power before home prices can react to the recent interest rate changes.

• High inventory – a new subdivision can create pressure on pre-owned home prices nearby, particularly if those homes lack highly desirable features (modern appliances, durable counters, wood floors, etc.)

• Natural disasters - a recent earthquake or flooding can tank property values in the neighborhood where those disruptions occurred.

It has been quite a while since we have seen a buyers market in the state of Texas, but I am patiently awaiting the day when it starts to tip back in my buyers favor!

Wondering when we will see another buyers market?

Let's chat about your situation and see how I can help you! Maybe we can get you a great deal outside of a buyers market, or maybe I can help you start preparing so when it hits, you are one of the first buyers touring homes when the prices start to level out and the competition softens.

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