So, let’s talk about the first step to make your real estate journey smooth and hassle-free. It all starts with understanding how the real estate market works. Sounds complicated? Not at all!
You see, the real estate market is simply a collection of properties available for sale in a specific area. Just like any other market, it can be influenced by economic forces, which can cause prices to fluctuate and the supply of properties to shift. That’s why it’s constantly changing, keeping things interesting! Now, let’s dive into the different types of markets and how they can impact your real estate goals.
THE BUYER’S MARKET
Picture a buyer’s market. In this scenario, there’s a greater supply of properties compared to the demand. So, if the list of available homes is long while the number of buyers is limited, it’s likely that your house will stay on the market for a bit longer. In New Jersey, we typically consider it a buyer’s market when there’s a supply of 7 or more months. Essentially, it means that if no new houses were put up for sale, it would take 7 months or more to sell all the available homes. The more months of inventory there are, the stronger the buyer’s market becomes.
THE SELLER’S MARKET
Now, let’s switch gears to a seller’s market. This happens when there are more buyers than available properties. In this situation, home prices tend to increase, and houses sell like hotcakes! In New Jersey, we generally consider it a seller’s market when there’s a supply of 6 months or less. So, if no new houses hit the market, it would take 6 months or less to sell all the homes up for grabs. The fewer months of inventory on the market, the stronger the seller’s market gets.
KNOWING WHEN TO MAKE A MOVE
Now, I know you’re probably wondering, “When is the best time to sell or buy?” That’s the golden question every real estate agent, myself included, gets asked daily. But here’s the truth: the best time is when it feels right for you. While the real estate market is influenced by supply and demand, it’s also affected by countless complex external factors, including emotions, which can’t be measured. So, trying to “time” the market is never a surefire strategy.
Remember, my friend, understanding the real estate market is essential, but finding the right time for you is what truly matters. Happy house hunting or selling!