A buyer’s market is prevalent when house buyers have more bargaining power than the sellers. Essentially, a buyer’s market has the following unique characteristics:
- The number of properties up for sale is higher than the number of buyers looking for properties to buy.
- Buyers have a wider range of options to choose from and more time to view and purchase houses.
- Buyers can easily negotiate prices to lower amounts as sellers struggle to close deals due to a shortage of buyers.
The opposite of a buyer’s market is a seller’s market. In the Saskatoon real estate industry, this occurs when:
- The number of buyers in the market is higher than the number of properties available for purchase. Therefore, the supply is low.
- The prices skyrocket due to the high demand and short supply.
- Sellers have more leverage and bargaining power than the buyers, which keeps the prices high.
Sometimes, the Saskatoon real estate industry experiences a balanced market. Here, the supply of properties and the demand for them is almost equal. This means that there are as many house sellers as there are house buyers. A transaction that occurs in this period is ideal for both parties as they have enough time to negotiate and agree on a fair price.
According to Canada Mortgage and Housing Corporation, the main factor driving the booming Saskatoon real estate market right now is the availability of natural resources in Saskatchewan. The region’s economy is predicted to continue growing into the foreseeable future because of large investments in energy and urbanization projects.
Considering the shift between these three markets over the years, it’s important that you hire a realtor to advise you on the best way forward, when it comes to real estate transactions. With expert guidance, you can make very high returns on property sales or get a great house at a great price just by putting your money in the right place at the right time.
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