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Buyers’ Market VS Sellers’ Market


For this post, we at At Home Realty would like to introduce new concepts to our readers. Most people have heard the terms buyers’ market and sellers’ market but what do these terms mean and how are they determined?

Buyers’ market simply means that the supply is greater than the demand. In real estate terms, buyers’ market means that there are more properties for sale than there are buyers. There are a lot of factors that might cause this trend. This could be a result of high unemployment, fear of interest rate increases or other factors which make people think twice about purchasing a home. The usual result of this would be lower property prices thus it is in favor of the buyers. On the contrary, in a sellers’ market, there are fewer homes for sale to a larger pool of buyers. There might be a list of ready buyers waiting for properties for sale. The factors causing this condition could be sustained low interest rates, high employment rate and other events and conditions that make buyers think that it would be a good time to buy a big ticket item like a home.

Real estate brokers are the first to notice whether a specific area is in a buyers’ or sellers’ market. Their business is helping both sellers and buyers with their real estate needs and any change in the market affects how they work with clients. These constant fluctuations affect the price recommendations that they give their customers. Here in the Philippines, there is an informal yardstick used to determine if a community is in a buyers’ or a sellers’ market. When a property sells for more than six months assuming that it is correctly priced, the community is in a buyers’ market. When a property sells for less than six months, the community is said to be in a sellers’ market. Anything in between is considered to be a balanced market. If this is the case, it would take about six months to sell all the homes listed if there are no new properties listed for sale. A balanced market is stable but not stagnant. Graphically, you can envision a balanced market as a slow steady trend of price increase. This condition can be good for both buyers and sellers. Prices are expected to stay strong if not stratospheric. Also, the increased inventory and affordability will delight buyers and entice them to purchase a home or a second property.

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Currently, Ayala Ferndale Homes is enjoying a sellers’ market on lots in Phase 4. Houses in Phases 1, 2 and 3 are also on a sellers’ market.  If you are planning to sell your property, now is actually a good time. To learn more about this, feel free to discuss this with us. Contact At Home Realty to know about your best options whether you are a buyer or a seller.

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