Understanding the market conditions
There are several factors that influence these cycles, including mortgage interest rates, employment growth, investment growth, construction, immigration, government assistance programs, and gravitational forces caused by mayor weakness in the local and world economy.
| MARKET CONDITIONS DEFINITION | CHARACTERISTICS | consecuences |
| SELLER MARKET: Market situation where demand exceeds supply, and the owners have an advantage over buyers in the price negotiations. | Booming local economy, local business are hiring, low exiting housing inventory, builders are not producing enough homes to fill the job base. | The property prices are increased, there are multiple offers, buyers have to make quick decisions and have little bargaining power. |
| BUYERS MARKET: Market situation in which supply exceed demand, giving purchasers an advantage over sellers in price negotiations. | Employment growth down and/or there are massive layoffs. Local businesses are closing, the inventory of properties is high, foreclosures increased. | The properties tend to depreciate, the first time buyers market emerge, buyers have more time to search for properties and better conditions to negotiate. |
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