Real Estate Market in Dallas
The real estate market in Dallas and elsewhere regularly fluctuates. Sometimes, it is the ideal time to buy a home. At other times, it is more to the seller’s advantage to put their house on the market. How can the average person know when they should buy or sell a home in Dallas?
The best answer is to ask an experienced, local Realtor who is a CRS. It is part of the Realtor’s job to have an intimate understanding of the local real estate market. Whether you are buying or selling, they provide expert guidance regarding how to successfully navigate the market. That said, it’s also helpful to understand more about common terms in real estate, like “buyer’s market” and “seller’s market.”
In this type of market, there is an overstock of homes for sale. That means there are fewer buyers, so home sellers can become particularly anxious to sell if their property has been on the market for a while. Although a buyer’s market can occur in any season, it is most likely to happen in the summer when many families are looking to relocate prior to the start of a new school year.
Realtors use a Sales-to-Listing ratio to determine whether or not a buyer’s market exists. If there is an average of 35 home sales for every 100 listings, then a buyer’s market is prevailing. This is good news for prospective home buyers who will have plenty of options from which to choose. Moreover, they will likely pay less for the property because the previous owner may be desperate to sell. Another advantage of buying in a buyer’s market is that there is less competition. You are far less likely to have to enter a bidding war to get the property you want.
The seller’s market is just the opposite. In this scenario, the Sales-to-Listing ratio is closer to 55 homes sold per 100 listings. This means that the market is extremely competitive, with fewer homes being available to a larger pool of buyers.
Home sellers have all of the advantage in this market. They have the commodity that everyone wants, and buyers may be willing to pay top dollar. Bidding wars are frequent, with many home sales coming in at well above the original asking price.
Buyers may be tempted to overspend in a seller’s market, but if they are guided by an experienced and knowledgeable Realtor, they can stay within their spending guidelines while also making competitive offers to sellers.