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What Is a Buyer’s Market?
A buyer’s market is a common term used to describe the cycle in the market where it is more preferable for buyers, rather than being beneficial for sellers.
This happens when there are more sellers than there are buyers, and supply outpaces demand. This can occur for numerous reasons that vary by each local real estate market.
A buyer’s market is always a great time for a buyer to consider getting into the market. When making an offer, it’s easier to add subjects and conditions (i.e. inspections) to the sale, allowing the deal to be potentially more beneficial for the buyer.
How Is It Used in Real Estate?
The term buyer’s market is commonly used by news websites and real estate agents; you may even hear it from friends and family when they discuss real estate.
It’s a common term that you’ll notice as you look at real estate news and talk to agents.
Overall, purchasing a property during a buyer’s market can be beneficial for your deal and usually price point, too.
Example
Rajdeep is a first-time home buyer. He is reading online that it’s currently a seller’s market, but experts are predicting that, due to the increasing interest rates, it could soon become a buyer’s market. This may be a good chance for Rajdeep to get into the real estate market and buy his first property.
