Buyer’s and Seller’s Markets in Real Estate: A Simple Lesson In Pictures

The law of supply and demand in the real estate market. Supply and demand in real estateIt’s like a see saw.



Buyer’s Market:

Fewer buyers, more inventory, prices go down.





Seller’s Market:

More buyers, less inventory, prices go up.




As the components change, you can start to see a change in the market. Are the number of sales going down or up? That represents the number of buyers in the market. Are the number of homes on the market growing or shrinking? That’s the inventory. Those two factors will tell you what’s happening with prices. No magic here.