admin-ajax.php

Buyer’s Market

A buyer’s market is when supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.

This is the basic premise of the Law of Supply and Demand.

Put simply, if there are plenty of sellers looking to sell, but few buyers looking to buy, then prices are likely to fall as supply exceeds demand.

Compare this to a Seller’s Market where prices increase as supply can not keep up with demand.

What happens during the period of a buyer’s market?

Generally, in a buyer’s market, properties will sit on the market for longer before receiving an offer and sell for less than their asking price. Often, there is competition between property sellers so they must drop the price of their property to attract an offer from a purchaser.

Buyers markets occur during the slump and stabilization phase of the property cycle.

 

« Back to Glossary Index


Want more of this type of information?


Avatar for Property Update

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au