The Difference Between a Buyer’s and Seller’s Market: What It Means for 2021
As you look at the market for your next Lake Tahoe property, you may be wondering what the 2021 housing market looks like compared to last year. For homeowners and homebuyers alike, the 2020 housing market was a weird year. COVID-19 turned a once-promising market into a resounding seller’s market. People pulled listings, prices went up, and purchases slowed. However, there were still signs of life, and people did buy and move into new homes in the turbulent year. Now, many homeowners and buyers enter 2021 trying to figure out if they’ll have more luck this year and which way the market is trending towards; in other words, will it be a buyer’s or seller’s market?
The following infographic highlights some of the key differences between a buyer’s and a seller’s market:
What Makes a Buyer’s Market?
A buyer’s market puts the power directly in the hands of the people looking to buy a home. Abiding by the concept of “supply and demand,” buyer’s markets are defined as increasing supply that drives the demand, and the prices go down. So when the housing market is flooded with attractive properties with an influx of buyers with money to spend and invest in a home, buyers will generally see more favorable prices. Ongoing economic trends and buyer behavior directly impact the nature of the housing market and how it leans.
So, what does a seller’s market look like, and how does it compare to a buyer’s market?
The Anatomy of a Seller’s Market
Seller’s markets are defined by the lack of quality homes on the market, a lack of interested buyers, and a substantial price increase across the board. The power resides with the sellers; they can dictate the prices they offer without competing with too many competitive offers on the open market. 2020 saw a drastic shift to a seller’s market in the wake of the COVID-19 pandemic.
Which Way Will 2021 Lean?
While 2020 saw a definitive seller’s market, with things beginning to look up, experts are wondering if the housing market will rebound and become more of a buyer’s playground. However, even with signs that the pandemic will slow down and life will return to a semblance of normalcy, experts still project a robust seller’s market for 2021. With prices remaining high and increased competition from buyers, homeowners and property sellers will have the power to dictate prices and how the market responds.
Are you looking for an experienced mortgage broker to help you find the Lake Tahoe homes for sale of your dreams? Then contact Luna Lending to get started on your next home purchase today!
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