Which Real Estate Market is Best?

  

Hot, Cold or Neutral Markets 

How do you decide when to purchase or sell?  When most people decide to sell or buy a home, very few stop to take the temperature of the marketplace or wonder if the market is conducive to what they want to achieve.  That's because most folks tend to think of their home as a place to live and not as an investment. 

Buyer's Real Estate Markets

If you are considering purchasing a home, a buyer's market is the best financial market in which to buy.  Why?  Because there are more homes available for sale than buyers to purchase them.   Buyers have more homes to choose from, which increases the odds that they will find the right home at the right price.   

In a cold real estate market, serious sellers are often willing to negotiate. This means you can probably buy a home for less than list price. 

Signs of a Buyer’s Market

  • Inventory is high as compared to previous months / years.
  • More than six months of inventory is on the market.
  • Comparable sale prices are higher than active listing prices.
  • Fewer buyers are purchasing, resulting in lower closed sale numbers.
  • Median sales prices are declining.
  • Real estate ads are getting bigger.

For Sale signs are staying up longer, resulting in longer days on the market as properties take longer to sell.

Seller's Real Estate Markets

If you are a home owner who wants to sell a house, a seller's real estate market is the best financial market in which to sell.  Why?  Because there are more buyers than houses available to buy.

In a hot real estate market, serious buyers are often willing to pay more than list price. This means you can probably sell your home quickly and quite possibly for more than you ask for it.  If your market is sizzling hot, you might be able to demand that buyers waive appraisals and inspections, although it's always a good idea to let a buyer have a home inspection. 

Signs of a Seller’s Market

  • Inventory is very low as compared to previous months / years.
  • Less than six months of inventory is on the market.
  • Comparable sale prices are lower than active listing prices.
  • More buyers are purchasing, resulting in higher closed sale numbers.
  • Median sales prices are increasing.
  • Real estate ads are getting smaller.

For Sale signs are up for a few days before a pending or sold sign is attached.

Neutral Real Estate Markets

Neutral real estate markets are balanced. Typically, interest rates are affordable and the number of buyers and sellers in the marketplace are equalized.  The scales don't tip in either direction, meaning the market is normal without experiencing volatile swings.

Signs of a Neutral Market

  • Inventory is normal as compared to previous normal months / years.
  • Three to six months of inventory is on the market.
  • Comparable sale prices are close to active listing prices.
  • Sales numbers have stabilized.
  • Median sales prices are flattened.
  • Real estate advertising remains uniform.

For sale signs are replaced with pending or sold signs within 30 to 45 days.

Still not sure what the current conditions are telling you?  Then this is the time that you should contact Ron Karp Realty Ltd. and let one of our knowledgeable agents meet with you to answer your real estate questions.  With over 30 years experience in the Barbados Real Estate Industry, Ron Karp Realty Ltd. has an intimate knowledge of the local property market.  Let our local knowledge work for you!

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