How To Know When It's A Buyer's Market

By Author: Alan Sean
Total Articles: 1
Comment this article

If you are looking for new property for sale in Ontario right now, you might be dismayed before you even start if you are listening to the news headlines. It seems you can't turn on the news today without hearing about foreclosures all over the place, people losing their jobs, and homes staying on the market forever. The truth is, there is nothing further from the truth. When it comes to new property for sale in Ontario right now, it's a buyer's market. What does that mean? And how do you know if it is a buyer's market for you? We will discuss exactly those issues right here.

In the real estate industry, you have real estate agents, and you also have buyers and sellers. Buyers and sellers obviously have their own different goals. Real estate agents want to keep their clients happy. A seller's goal is to get the most out of their home when they sell, and to make as much money as possible. A buyer's goal is to get a new property for sale at the lowest possible price. Makes sense right? But in a slow economy, whose market is it anyway? The buyer's. In a slow economy, more sellers are motivated to sell quickly, sadly enough ...
... they are often being forced into it. This gives the buyer an advantage. It all comes to demand and supply. When there are more listings on the market, it becomes a buyer's market, because they have more options to choose from, and thus, can be a little more selective in their offers.

Sellers know this. Unfortunately today many sellers have no choice but to sell their home, and so they will accept offers much more quickly. Although more listings are coming up today, for sellers this isn't good news. They know their buyers have more to choose from, and this makes them more motivated to sell. Good news for buyers.

Another element that makes it a buyer's market is the time of year. Whether the economy is slow or not, buying in the winter will almost always get you a better price. Fewer people move or want to move in the winter, but when they have to, they have to. As well, a large body of research has documented that more marital breakups happen in the winter months just after the holiday season. Some have even called January as "divorce month". You then will see a lot of properties go on the market shortly after this period, sadly due to a marital breakup. Usually when a marriage ends, you have very motivated sellers who are looking to close this chapter and move on with the next in their lives. This is another reason why winter is a buyer's market for those looking at new property for sale in Ontario.

In an average real estate market, a home should take approximately six months to sell. This means there will be new property for sale with roughly six months of listings in the market at any given point in time. If homes stay on the market for less time than that, it may be a seller's market as homes are going quickly. When the listings begin to outnumber the sales, this is when it becomes a buyer's market, and this is exactly what is happening in Ontario right now.

A buyer's market simply means the demand is low and the supply is high. When there are fewer buyers, the buyer gets more control in the process and it becomes a buyer's market.

It's a buyer's market in Ontario if you are looking for new property for sale . Contact us if you are buying new property for sale in Ontario!