These two market types drastically change how buyers and sellers should approach real estate.
Buyer’s Market = More Homes, Less Competition
- Inventory is high
- Sellers may reduce prices
- Buyers have negotiation power
- Offers can include more contingencies (inspections, repairs, etc.)
Seller’s Market = Fewer Homes, More Competition
- Inventory is low
- Multiple offers are common
- Prices rise quickly
- Buyers may waive contingencies or bid over asking
How to tell what kind of market you’re in:
- Look at “Days on Market” and price change trends
- Ask a local agent for absorption rate data (homes sold vs. active listings)
- Check recent sales-to-list price ratios
Whether you’re buying or selling, understanding the market climate helps shape strategy, pricing, and expectations.
