Buyers Market Vs. Sellers Market

[Nick J.]

I wanted to take this opportunity to open a discussion on what you think a buyers market is compared to a sellers market.

I personally don't believe there is such a thing as a buyers market.

The way I think is this, Regardless of if the housing market is strong or weak, this or that, its never really a buyers market and that term is made up.

The seller determines if they want to or will sell at a particular price. Although your property is only worth what someone is willing to pay for it doesn't mean you have to sell it at that price. Sure, some motivated sellers sell at a deep discount but that doesn't mean it's a buyers market.

I've always believed that Real Estate is always a sellers market, whether they(the sellers) are selling discounted compared to a recent sale(s) or not, it is still their choice therefore it's always and will always be a sellers market.

What do you think/believe?

Without getting hijacked or turning this into a political discussion I would like to hear your philosophy between the two. Do you believe that just because sellers are selling at a perceived discount that it is a buyers market or do you believe the same as I and the term 'buyers market' is a term used to spur purchases and growth?

[Steve Nicewarner]

By definition, a "market" requires that a buyer and a seller mutually agree on a price and thereby establish a "market value". Sellers can offer their product [whether it be a house, a car or a potato] at whatever price they want, but if they can't find a buyer for it at that price it won't sell.

The key difference between a buyer's market and a seller's market is which side is in shorter supply. During the go-go days earlier this decade there were plenty of people who wanted to buy property, and fewer people who wanted to sell it. Thus sellers had greater influence -- it was a seller's market.

Today, the situation is reversed. There are scores of people who want to sell, but many of the buyers have been scared away. So, the buyers that remain have a greater influence -- it's a buyer's market.

Having said all the above, I would also be among the first to agree that emotion plays a bit part in determining which side we're on. In my local market [Durham, NC] for example, we have neighborhoods and price points where there are plenty of buyers and the numbers say it should be a seller's market. People listen to the news, however, and, "knowing" that it is a buyer's market, keep prices depressed.