A buyer’s market refers to a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.
In short, a supply increase amid constant demand puts downward pressure on prices, while a demand increase amid constant supply puts upward pressure on prices. If supply and demand rise or fall in tandem, prices are generally impacted much less. In a real estate buyer’s market, houses usually to sell for less and sit on the market longer before receiving an offer. The competition in the marketplace exists between sellers, who often must engage in a price war to entice buyers to make offers on their homes.
At the same time the supply is exceeding demand, mortgage rates are dropping again.
The 30-year fixed mortgage averaged 3.66 percent for the week ending November 21st, down from 3.75 percent last week. A year ago, mortgage rates were at 4.81 percent. Low mortgage rates help propel U.S. home sales and the refinance market.
The housing market is gaining momentum with rising homebuyer demand and increased construction due to the strong job market.
It’s shaping up to be a good time to buy! Take the first step and get pre approved today.