posted by admin on Jan 23
Seller’s market, buyers market, but what do we talk? A market is in equilibrium when buyers and sellers are on equal footing in terms of bargaining power. Generally, we talk about balance in the resale of existing homes where between 8 and 10 properties for sale for every buyer. The market is advantageous to the seller when the ratio is lower, for example, a buyer for five properties. A smaller number of properties for sale mean less choice for the buyer. Of the five properties, there may be two condos, bungalows and two semi-detached.
If this is the combined interest to our buyer, it will inevitably pay the price soon and even renchérir when the market is strongly in favor of sellers, before another buyer comes just as interested. Conversely, if there are 15 properties for sale to a buyer, there may be three or four twin available. The buyer has the choice. This will be the seller to give ground if he wants to find a buyer before the other vendors. The real estate market is constantly looking for a balance between supply and demand. When supply does not respond adequately to the demand, new construction is growing in importance. All these new buildings will be found eventually on the resale market, pushing the ratio of sellers / buyers to an equilibrium point or to the advantage of buyers.