What Exactly is a Buyers' or a Sellers' Market in Real Estate

By
Real Estate Agent with Power Brokers Int'l BRE# 01439865

When buying or selling real estate in Los Angeles  we often talk about the market as being a buyers’ or a sellers’ market, based on the absorption rate.Sellers' Market

The absorption rate is the number of months it will take to sell the existing inventory based on prior months’ sales.  6 months is a balanced market, under six months a sellers’ market, and over six months a buyers’ market.

However the market is neither a buyers’ or sellers’ market if no one is buying or selling, and ultimately we rely on sellers putting new homes on the market to spur the buyers out there who are fed up with the lack of inventory, or a glut of stale inventory which is either overpriced or not what they are looking for.

If you are a Los Angeles home seller, have a great home in a desirable area, and decide to list it at market rate, you are going to have a quick sale and it will probably go into a multiple offer situation.  Buyers have been chomping at the bit for a home like yours.

Buyers’ markets in areas like Los Angeles are usually short-lived.  The foreclosure market does not always benefit your average buyer.  The bargains are snapped up by investors and what’s left is usually not that desirable.

Short sales could drive a buyers’ market but many buyers are turned off by the long wait and uncertainty of the process.

So, we are back to good homes in good areas at good prices.  Those will always a sellers’ market make.

 

 

Buying or Selling Los Angeles Real Estate

Buying or selling a Los Angeles home can be a daunting process in a city this size, especially if you’re new to L.A. Town. You’ll need a resident expert to show you around and help you narrow down the areas where you might like to live. I will help you find the perfect home in the right area to fit your lifestyle, budget and needs!

When I list and sell Los Angeles homes for my clients I strive to make the experience a pleasant one. My mission is to provide outstanding service while utilizing the best practices and systems available.

If you are an absentee owner, you’ll need someone to handle all the details that you can’t handle remotely. That’s where I come in – I’m there when you can’t be. I also specialize in lease property in Los Angeles.

Westside Los Angeles Real Estate, including, but not limited to:

For more information on how I can best serve your Los Angeles real estate needs, don’t hesitate to fill out the contact form or give me a call at 310-473-6919.


Read more: http://www.homejane.com/define-a-los-angeles-real-estate-buyers-or-sellers-market.html#ixzz1qX9bOZfX

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  1. Norma Toering 03/29/2012 03:37 PM
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Show All Comments
Rainmaker
676,258
Gene Mundt
www.genemundt.com - Joliet, IL
Mortgage Lender - Chicago/Chicagoland Mortgages

Jane:  Typically the midwest has faired better in housing than it has this go-round and recession.  Not that we had teflon or anything, but we withstood the storm and faired better than other areas of the country.  Like I said, not this time.  There have been spots, such as you mention, that have remained more close to a seller's market, but much of Chicagoland and Chicago is general is having a rough go of it.  As of late, some bright spots have appeared and it feels darn good.  Hope, at least.  Interesting how different pockets or areas are experiencing quite different outcomes in the market.  Easy to see why so many get bitten by the real estate "bug" and thrive on it ...

  Gene

March 30, 2012 09:48 AM #11
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

William,  you may be right.  But ultimately, sellers are in control.

Gene,  good.  There's light at the end of the long tunnel.

March 30, 2012 09:52 AM #12
Rainmaker
598,892
Barbara Altieri
RealtyQuest, Fairfield and New Haven County CT Homes for Sale and Real Estate - Shelton, CT
REALTOR - Fairfield County CT Real Estate

Jane - Listing at market rate ... and not overpricing -- is a surefire way to getting the house sold quickly. You're right that there are buyers, just not enough of the inventory they want to see. Stale and overpriced doesn't attract anyone.

March 30, 2012 03:33 PM #13
Rainmaker
891,836
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jane, as far as absorption rates go there is a distinction between the two. Sellers are in control in any market. Good point!

March 30, 2012 03:35 PM #14
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Barbara,  buyers need fresh, new inventory.  Sellers, where are you?

Michael,  sellers really do control the market.

March 30, 2012 03:45 PM #15
Rainmaker
1,226,805
Al & Peggy Cunningham Brokers, Brampton Ontario Homes For Sale 905-450-5500
RE/MAX Realty Services Inc. - Brampton, ON

Your market is sounding like our market. Have a nice home, price it right and consider it sold!

March 30, 2012 04:30 PM #16
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Al & Peggy,  that is pretty much the case everywhere nowadays.

March 30, 2012 07:02 PM #17
Rainmaker
1,253,565
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

Hoping that sellers up here your read your post Jane.  We need a little more inventory or realistic prices!!

March 30, 2012 08:59 PM #18
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Carla,  spread it far and wide.

March 30, 2012 09:12 PM #19
Ambassador
1,506,696
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Jane, back here on the right coast, in CT, we are still a very storng buyer's market with some towns with inventory well into a 'buyer's range'. Hopefully it will turn soon and we can at least enjoy a market where it  doesn't have to be slashed to sell.

March 31, 2012 05:15 AM #20
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Ed,  unfortunately, it is not a buyers' market when the sellers' prices are too high.  Again, the sellers control the market :(

March 31, 2012 09:49 AM #21
Rainmaker
648,382
Realty Works Temecula
Realty Works Temecula - Temecula, CA
Real Estate, Temecula, Murrieta, Menifee

Hi Jane:  Many consumers get really confused about the term buyer's market or seller's market great information, and congrats on the feature.

March 31, 2012 03:38 PM #22
Rainmaker
717,468
Larry Brewer
Benchmark Realty LLc - Nashville, TN
Nashville Real Estate

But Jane- all of my buyers keep telling themselves it's a buyers market, and then when they find out that all of the great deals that they could have had last year are long gone, they want to blame me for not finding more great deals. Ha - I love it.

March 31, 2012 05:33 PM #23
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Jane,  thank you.

Larry,  well of course it's your fault.  :)

March 31, 2012 05:35 PM #24
Ambassador
1,550,626
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M

Jane - This is a great explanation regarding buyers' and sellers' markets.  We are also seeing a lack of inventory in many areas.

March 31, 2012 08:52 PM #25
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Christine,  sellers, are you hearing this.?

March 31, 2012 09:59 PM #26
Rainer
15,438
Brian Park
Danville, CA

The answer is simple, it is the number of ready, willing, and able sellers versus the number of ready willing and able buyers in a specific market place. It can be various type of markets, geographic, price, and many others even though we use the term most of the time in a general sense.  

March 31, 2012 10:06 PM #27
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Brian, good explanation.

March 31, 2012 10:09 PM #28
Rainmaker
444,142
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

Jane,

Great post, it puts these terms into an easy to understand format. If someone is thinking of selling their Los Angeles home, they need to call you! Congratulations on the feature.

Our days on the market here in South Florida are so so low and we are so short on inventory that this week I sold a home  while they are on "T" status (sellers took the home off the the market temporarily while on vacation).

April 01, 2012 09:35 AM #29
Rainmaker
883,564
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Patty,  that is amazing.

April 01, 2012 03:25 PM #30
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Rainmaker
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Jane Peters

Connecting you to the L.A. real estate scene
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