Pay attention to market conditions – they will have a definite impact on your position as a buyer. The table below lists the influences that different conditions may have on you. Impact and expenses may vary, depending on your area.

Market conditions

Characteristics

Implications

Buyer’s market – The supply of homes onthe market exceeds the demand. High inventory of homes. Few buyers compared to availability.Homes are on the market longer. Prices tend to drop. More time to look for a home. More negotiating leverage.
Seller’s market – There are more buyerslooking to buy a home than there are homes on the market. Smaller inventory of homes. Many buyers. Homes sell quickly.Prices usually increase. May have to pay more and make decisions quickly. Conditionaloffers may be rejected.
Balanced market – The number of homeson the market is equal to the number of buyers. Sellers accept reasonable offers. Homes sell within anacceptable time period. Prices are generally stable. More relaxed atmosphere. Reasonable number of homes to choose from.

Source: Royal LePage Canada

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