We've all heard it a million times in the past year or two. "Oh, you're in real estate? Pretty slow now, huh?" or "The market's pretty bad now, right?" AHHHHH I want to pull my hair out!
The market isn't bad! That's actually an impossibility. According to the laws of supply and demand, if the market is bad for one party, it must be good for the other.
LOW SUPPLY = HIGH DEMAND = GREAT SELLER'S MARKET
A few years ago everyone was talking about what a great market it was. Prices were going up and up and up! Homes were selling like hotcakes! The market was GREAT!!!!...... for sellers. Buyers were facing bidding wars. Full price offers were being outbid by offers over the asking price. Who wants to pay MORE than the asking price? The market was actually only good for the sellers, yet the media and everyone else was sold on the idea it was a good market overall.
HIGH SUPPLY = LOW DEMAND = GREAT BUYER'S MARKET
Today, it's not a great market for sellers given the inflated prices they bought at during the real estate boom, the listings saturation in most areas, and the value drops properties have experienced. But a less-than-desirable market for sellers makes it..... THAT'S RIGHT!... a great market for buyers! If prices are dropping, and there are tons of homes on the market to choose from, how could it NOT be a good market for buyers?
So, let the media say what they want. They think the market is that bad? Good. That's a few less people you'll be in competition with to buy your dream home!
Director of E-Marketing & Technology
The Take 5 Team
Copyright © 2008 Meghan Mullee