Like most things we want in life, how much better is it when it comes at a “deal”. The real estate industry has trained people on how satisfying it can be when we get a house under asking price. Other than that, getting a good deal on a home is purely based on the market. Are we in a sellers market? Or a buyers market?
Lets briefly explain each one.
Sellers market: Simply put, people have to pay more for what they want because the demand for homes is higher than what is available.
Example: As a seller, you are likely to be taking multiple offers on a property that could end up in a bidding war or offers that start at over asking price.
Buyers market: Is the opposite. As a buyer, there is lots of supply. People are getting the house they want, so to speak.
Example: Typically you see less offers as a seller and might have to bring down your price to get it off the market faster.
What is Riverside,CA?
Current data would suggest Riverside is in a sellers market (graphic from theopenhouse.com).
This market is obvious for two more reasons:
- Homes selling over asking
- Homes not sitting on the market
Of those 2011 homes sold¹, 140 of them sold in three months or less (9 in less than a month).
I want to buy, but it is a sellers market?
The first rule I give with clients is you can’t let the market be your driving force. Your family, career, and life (time in one area) are much more important to consider first. The state of the market is much more important to guide your strategy, not guide your plan to buy or sell.
This is when its crucial to work with a great real estate agent. They can go over local neighborhood data, how long homes are typically on sitting on the market, and if offers should go in at asking or over asking price. This formulate a game-plan when looking at homes and how to maximize your time.
Two things to keep in mind for a sellers market.
- Don’t play hardball (unless you understand the risks)
- Open up to a larger search area
Playing hardball in the price of a home is your American right! right? Well this maybe true. But that seller with multiple offers is just gonna ignore you when your the only one low balling the home.
As a general rule, you are told there is risk of potentially buying homes on the market for a long time. In a sellers market , this could be a hidden gem. Every home should be carefully inspected, but sometimes the house is sitting on the market for reasons you don’t consider important. It simply might be overlooked from buyers because it requires a long commute to work.
Inventory levels and the coming summer months also have contributed to this.
Another graph from here.
As you can see, the drop in the graph once we hit summer. This is the impact of the so called, “busy season”.
What has been your experience? Are you thinking of buying but waiting? Let me know in the comments below.
- Data shows that Riverside is in a sellers market
- A sellers market does not mean it is a “bad” time to buy.
- Talk with your agent about new strategies in a sellers market
- Avoid impulse buying a home (duh), but make sure to be prepared to act quickly.