Is It a Buyer’s Market or a Seller’s Market? Here’s What You Need to Know
Is It a Buyer’s Market or a Seller’s Market? Here’s What You Need to Know
If you’re thinking about buying, selling, or investing, it’s critical to know what kind of market we’re in. Are we in a seller’s market or a buyer’s market? That difference can impact everything—how long a home sits on the market, how much negotiating power you have, and what kind of return you can expect.
At KW Default Solutions, our job is to break this down in plain English so you can make smart, confident decisions. Let’s take a look.
What Is a Seller’s Market?
A seller’s market happens when there aren’t enough homes for sale to meet demand. That means less than six months of inventory on the market. When this happens, buyers compete for fewer properties—and that drives prices up.
What this means for you:
Homes sell fast
Bidding wars are common
Sellers can be more selective
Prices appreciate
What causes a seller’s market?
Low inventory (fewer homes available)
Strong job growth and economic conditions
Lower mortgage rates
Easier lending standards
Limited new construction
If you’re selling in this type of market, it’s a great time to get top dollar. If you’re buying, you’ll need to be aggressive, strategic, and prepared to act fast.
What Is a Buyer’s Market?
On the flip side, a buyer’s market happens when we have more than seven months of inventory. That means more homes for sale than there are buyers looking. This puts downward pressure on prices and gives buyers the advantage.
What this means for you:
Homes take longer to sell
Prices soften or decline
Buyers have more negotiating power
Sellers may need to offer incentives
What causes a buyer’s market?
High inventory levels
Slower economy or job loss
Higher interest rates
Tighter lending standards
Oversupply of new homes
Buyers in this market can afford to take their time and negotiate better deals. Sellers may need to get creative and price competitively to attract serious offers.
Why It Matters
Whether you're trying to avoid foreclosure, get out from under a property, or invest in distressed assets—understanding the market dynamic is the first step. At KW Default Solutions, we specialize in helping clients navigate these shifts, especially in the REO, short sale, and foreclosure space.
We track inventory levels, price trends, and local data so you don’t have to guess. The goal? Help you buy right, sell smart, and stay ahead of the curve—no matter what kind of market we’re in.
Got questions about the current market in your area? Want to know how this affects your options as a homeowner, investor, or agent? Let’s talk.
At KW Default Solutions, we’ve helped thousands of families and investors make the right move—and we’re here to help you too. Visit KWdefaultsolutions.com
