What is a “Buyers Market” in Real Estate?
by Dave Williams
In the real estate business, we toss around a lot of terms and unless you’ve spent substantial time preparing for your real estate transaction some of them are bound to go over your head.
Fear Not, for our new series of Real Estate Terms will help you sort them out.
Statistically a buyers market is described by:
- a market in which the average days on market for homes is over 180 days (6 months)
- or a market in which less than 40% of the new listings are selling.
As the market strongly favours the buyers, homes have been on the market for a very long time, the sellers are strongly motivated to accept a deal and sell.
Buyers markets are typically characterized by static, or flat prices and sometime will even show a slight decline over the previous year(s). I add the (s) as there have been two occurance of consecutive year decrease in Ottawa over the last 54 years, 1961-62 (5% total decrease) and 1994-5-6 (5.3%) but price drops in the market as whole are rare.
Like any other market each neighbourhood has it’s own characteristics so even in an over all buyers market there will still be pockets of high demand and pockets of steep price declines, though traditionally home owners in Ottawa will weather those drops and consider selling when the market rebounds.
Home Team Ottawa, guiding you home.