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What is a "Buyers Market"
To most Realtors a typical market in real estate is when homes stay on the market at least on average six months before they sell. Realtors keep track of the DOM or the Days on the Market of all homes listed and sold.
If the number of DOM "Days on the Market" goes above six months then it is typically said itís a Buyers Market if goes below six months then it shifts to a Sellers Market. As we are seeing now here in Miami Beach in the surrounding areas of Miami-Dade County and Broward County and South Florida the last three years and more have been a really nice Sellers Market demanding any price and getting what they ask for. The market now is slowly shifting into a Buyers Market and the homes are taking longer an the inventory of homes have increased. Now the Buyers have a lot to choose from this inventory we have here in Miami Beach Real Estate and the surrounding areas.
Winter time is said to be a Buyers Market. In slow times, homes for sale are marketed aggressively and would sell for a lower price versus if the home was marketed during a busy period.
Come Spring time the activity picks up with more homes coming on the market since this is when families (typically still considered the largest buyer demographic) tend to want to buy their home so they can move during the summer season.
But a Buyers Market can still exist during this season if the DOMs get longer, falling prices and a large inventory for buyers to choose from.
Buyers market can lag around for a while if a large employer in the area closes its doors, natural disasters such as they experienced in New Orleans when Hurricane Katrina came rolling in and of course here in Miami Beach with Katrina and Wilma and Charlie, Hurricane seasons affects the market in such a way for DOMs to be longer. All this can affect home values for years.
Once homes for sale become competitive, buyers realize they can choose from many since the inventory is so large. Material things in homes become bargaining chips for buyers like the expansive chandelier or the expensive curtain. Buyers can demand those items be part of the home for the sale to take place.
Other contingences the buyers would ask for are possible costs to be off set for example to pay for some of the closing costs or maybe even a home warranty.
One thing for sure is that the market is never one sided. At any given time the market can shift and the turn of a dime. An area that has seen depressed times can spur many investors to reinvest into an area because of the low prices and shift the market the other way with prices being driven upwards as we have seen here in recent years in Miami Beach, Doral, Homestead, Miami Shores, Biscayne Corridor and Downtown Miami.. For more information about your market conditions contact your Realtor Randy Haddadin a Miami Beach Realtor at 305-903-9850.