Buyer’s Market vs Seller’s Market – What’s the Difference?
If you’re thinking about either buying or selling a home in Halifax anytime soon, you’ve likely heard that it’s a seller’s market. But you might be wondering what that really means, and what you should expect as a buyer or a seller. Here are a few things to know so you can make the best decisions in a seller’s market, no matter which situation you’re in.
Let’s take a look at the difference between a buyer’s market and a seller’s market. In both cases, it’s about supply and demand. In a buyer’s market, there are more homes on the market and a smaller number of potential buyers. This means as a buyer, you have a lot of choice and lots of negotiating power when it comes to price and conditions.
On the flip side, in a seller’s market there are more buyers than available homes for sale. It means sellers are often the ones holding most of cards when it comes time to negotiate. And that’s where the Halifax real estate market is right now and has been since last year.
What does a seller’s market mean for buyers?
As a buyer, one of the top questions on your mind might be, “Am I destined to get caught in a bidding war and end up paying more than the list price?” The short answer is not necessarily, although competing offers are very common in the Halifax area right now. But you will have a lot of competition from other buyers, especially for nice houses in popular areas. So, you should be prepared to act fast when you find something you like.
RE/MAX nova agent Stacey Devoe says there are now new rules to the game that require different buying strategies. “Buyers are wondering how to play the game and get the house they want at a price that makes sense for them.”
As a buyer, you might worry that you’ll end up paying too much in this type of market. But Stacey tells her clients to just make sure they believe the property is worth the value.
What does a seller’s market mean for sellers?
Selling your home in a seller’s market is usually a breeze. With fewer homes on the market and more buyers, homes sell quickly and prices tend to increase, since it’s common to have multiple offers on a home that shows well in a desired neighbourhood. As a seller, multiple offers give you more negotiating power.
It’s understandable that sellers in the Halifax area don’t want to miss out on the chance to get top price for their properties. But Stacey Devoe says there’s a whole strategy behind getting yourself in a multiple offer position.
Her best advice for sellers? “Pricing right and staging are key. Don’t over price,” she says. Pricing too high can push your house into a higher price bracket and you may lose a lot of potential buyers, which defeats the purpose. “The more interest you have the more likely you’ll get the price you want.”
How long can it last?
It’s been many years since Halifax had a seller’s market and predictions are it’s going to stay that way for a while longer. How long is anyone’s guess.
“From all indications, the housing market in the Halifax area will continue to be a seller’s market with low inventory and competing offers in some situations, at least heading into the busy fall season when the market usually picks up after the summer lull,” says Ryan Hartlen, broker at RE/MAX nova.
Ryan says the important thing for both buyers and sellers is to seek advice from an experienced REALTORⓇ who understands the unique dynamics of a seller’s market and knows what strategies work best.
