Seller’s market vs. buyer’s market: What you need to know about the current market situation

The real estate industry is changing. If in 2021 people were still talking about a real estate boom and record low interest rates, the situation now looks completely different. Find out if we are currently in a buyer's or seller's market and what that means for you as an owner or prospective buyer in our new YouTube video.

Seller’s market: More demand than supply

We speak of a seller’s market when demand for real estate significantly exceeds supply – a situation you may be familiar with from previous years. As a result, prices continued to climb. Property owners benefited from a particularly profitable sale and a short marketing period.

Buyers’ market: More supply than demand

While owners are in a better negotiating position in a seller’s market, prospective buyers can look forward to a large supply and lower prices given the current buyer’s market. For owners, falling demand means a longer time to sell and more marketing effort. The reasons for the change in the market are inflation, which increases the cost of energy and construction financing and reduces the number of potential buyers.

What do owners and interested parties need to consider now?

As a prospective buyer, you may benefit from falling real estate prices, but rising interest rates make it more difficult to purchase a property. Therefore, contribute as much equity as possible to reduce the loan amount.

Are you planning to sell your property? Then you should not wait too long. Experts believe that demand will continue to decline. The price curve is flattening out, but you can still generate a good profit. It is important to present the house or apartment in an appealing way and thus stand out from the competition.

Support from an expert

We at WEISS IMMOBILIEN know what is important and are happy to support you. We produce professional exposés with high-quality photos and also excite your interests with 360-degree tours and moderated real estate videos. Feel free to contact us for an initial consultation!

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