Types of Real Estate Markets

There are three types of real estate market that you need to be aware of when buying a Salt Lake Home.

Sellers Market

This is where there are more buyers looking for homes than there are homes listed for sale. Competition for homes can be fierce and some home listings may receive multiple offers within hours of being listed. Signs of a seller's real estate market are:

• More buyers than sellers.
• Home listings receiving multiple offers within hours or days of being listed.
• There are very few homes for sale.
• Home prices are rapidly increasing and new listings are being listed above recent comparable sales.

Buyers Market

This is where there are more sellers than buyers. Buyers can afford to take their time when looking for homes and there many homes on the market.

• More sellers than buyers.
• Many homes on the market.
• Homes are taking a long time to sell.
• Home prices are going down.
• New homebuilders are offering incentives to buy their homes.
• Sellers are willing to accept offers below the listing price.

Balanced Market

This describes a market that is neither a buyers market nor a sellers market. While homes are staying on the market longer than in a sellers market, prices are still going up all be it not at the same pace. Signs of a balanced market are:

• Homes are staying on the market longer than in a sellers market.
• Prices are increasing but at a steady rate.
• While some sellers who have to sell may accept offers below market value most sellers are prepared to sit it out and wait for the right offer.
• New homebuilders are offering some incentives to tempt buyers.
• There is a good supply of homes on the market.