What Are Buyers’ and Sellers’ Markets?

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Last Updated on October 7, 2020 by Melissa S.

What Are Buyers’ and Sellers’ Markets?


It’s no secret that house prices fluctuate.  The terminology that follows these fluctuations can be confusing for some and frustrating for others.  If you’re not sure of the difference or get the two confused often, here are the significant differences between the two and when to know they’re active.


What Is a Buyer’s Market?

A buyer’s market is a market that benefits those who are looking to buy homes.  This market happens when there are tons of sellers on the market because of market changes that make it so they can’t afford their homes anymore or need to relocate for work.  Houses are sold quickly and for cheap and are readily available.

Who Benefits?

Buyers who can’t afford much of a home, or landlords who want to buy more rental properties.  These buyers are quick to get 

How Can I Tell When It’s Time?

These markets are usually predated with a downturn in the market and a loss of jobs or income.  A surplus of supply over demand occurs so that buyers can freely pick from what’s available.

What Benefit Happens?

Buyers can find homes for low prices with a large selection available.  This choice will empower them to ask for more; instead of buyers paying for the closing costs, competitive sellers will step up and cover these costs to close a deal.  This market slows the construction of new homes, though, which means when the market turns around, and there are more buyers, it’ll be even harder to find a new home.


What Is a Seller’s Market?

A seller’s market is a market where there is more demand than supply, so homes sell faster and more money.  This option allows sellers to price higher and possibly buy again with the profit they made off their first home.  This move encourages more homeowners than landlords to purchase homes and keep them, which pushes up the cost of renting. 

Who Benefits?

Current homeowners, people selling, and people who develop the land into homes will benefit from this market.  It allows a more massive profit off of existing homes for any owners.  They hold power since people want to buy their homes and need somewhere to live.  

How Can I Tell When It’s Time?

This market happens when there is a surplus of buyers.  Sellers hold power.

What Benefit Happens?

This market encourages builders and construction companies to make new homes to sell.  Although the quality of rushed homes may be dubious, making more homes available is a quick way to even out the market and allow more people to own land.  Homeowners can sell their homes and retire during this market, if they’re ready to, while others who have been trying to sell for a while can finally sell their property.


There’s no right or lousy market for every single person; it varies over who holds power and where you currently sit in the market.  If you own a home and aren’t sure where the market is or how much you can afford, research the current market and a seller closing costs calculator.

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