The Three Types of Real Estate Markets

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Real estate markets can be divided into three main types: Sellers Market, Buyers Market, and Balanced Market. Let’s break down what each of these means:

1. Sellers Market

  • High Demand, Low Supply: More buyers than available homes.
  • Quick Sales: Properties sell rapidly.
  • Rising Prices: Property prices often go up.
  • Favorable for Sellers: Sellers have the upper hand in negotiations.

2. Buyers Market

  • Low Demand, High Supply: More homes available than buyers.
  • Price Negotiation: Buyers can negotiate for lower prices.
  • Longer Listings: Homes stay on the market longer.
  • Falling Prices: Property prices may drop.

3. Balanced Market

  • Supply and Demand Match: Equal number of homes and buyers.
  • Stable Prices: Prices remain relatively steady.
  • Fair Negotiation: Both buyers and sellers have room for negotiation.
  • Realistic Expectations: Balanced options for both parties.

In simple terms, whether you’re buying or selling, understanding your real estate market type is key to making informed decisions. In a Sellers Market, sellers have the upper hand; in a Buyers Market, buyers hold more power, while a Balanced Market offers a fair playing field for everyone involved.


It is so important to us that you feel empowered and educated throughout the buying and selling process – if you want to achieve your real estate goals or are thinking about listing your home soon, give us a call, text, or email with any questions you have! We can answer all of your questions, and give you specific tips related to the investing, stratas, and more. We’re here to help.