The Charlotte region is HOT, HOT, HOT when it comes to REAL ESTATE – Here’s why:
Buyer’s Market Definition
A buyer’s market occurs when the supply (available properties for sale) exceeds demand (the number of buyers seeking to purchase properties). If you’re buying a new home, a buyer’s market is the ideal time to make your move. You might be able to buy a great home for a lower cost than you would in a seller’s market.
If you are planning to sell your property in a buyer’s market, your home may remain on the market longer before you’re able to secure a buyer due to the large number of available properties. You may also have to lower your listing price or make other concessions in order to secure a buyer.
Seller’s Market Definition
A seller’s market occurs when demand exceeds supply, or there are more buyers seeking to purchase properties than there are available homes on the market. This often leads to multiple buyers interested in a single property, resulting in bidding wars. A seller’s market is a fantastic time to sell your home as you could secure a sale price that’s higher than your listing price, or at least more than your bottom line (the lowest price you’d be willing to accept for your home).
If you’re buying a home in a seller’s market, be aware that the seller has the advantage. If other buyers are interested in the same property you’re making an offer on, trying to get a lower sale price probably won’t work to your advantage. In fact, you could lose the opportunity to purchase the property altogether if a competing buyer makes a higher offer. Be prepared to potentially come out of pocket for additional payments to offset low appraisals if you find your dream home in a seller’s market. Seller’s markets are sometimes called “renter’s markets” for this reason; sometimes potential buyers need to keep renting until they can save up a higher down payment and compete with other buyers in the market.
How to Determine If It’s a Buyer’s Market vs. a Seller’s Market
The real estate market goes up and down depending on the season. In the Charlotte region, there are usually a lot more homes for sale in the spring and summer months (April – August) than any other time of year. In the Charlotte region, we are seeing for every listing that enters the market, two buyers are coming in at the same time. This means although we are in the slower selling season, it is still a seller’s market in the Charlotte region.