BLOGBlog posted On January 31, 2025
There are two real estate terms that get thrown around in this industry: a buyer’s market and a seller’s market. What differentiates these two markets? And how can you, either as a potential homeowner or seller, use this real estate knowledge to your advantage? Supply and demand is the bread and butter of this industry, the keys to understanding the nuances of the mortgage world, and the secrets to becoming a savvy borrower in the future.
How Do You Know You’re Living in a Buyer’s Market?
Simply put, a buyer’s market happens when home supply is up and the demand for homes is low. In this kind of market, price cuts and seller concessions are the norm. Buyers are also able to take their sweet time shopping around since they’re not fighting tooth and nail with other potential homeowners.
Let’s go over the key takeaways concisely to prepare you for tackling this kind of market:
What About Living in a Seller’s Market?
On the opposite end, a seller’s market is defined by a low home supply and a high demand from buyers. Buyers outnumber the sellers, boosting the competition tremendously. Bidding wars are common in this kind of market, and sellers often come out on top since they typically receive multiple offers from hopeful buyers.
Again, we’ll lay out some bullets below to brace you for a seller’s market:
Follow Market Trends & Consult Your Trusted Professionals
For the last few years, we’ve witnessed a sizzling seller’s market, but housing trends are constantly changing and economists have been predicting a more neutral market in 2025. If you consult with your local agents and our own loan professionals, we can advise you on buying or selling strategies, oriented towards your specific situation. For instance, if you’re a seller looking to get ahead in a buyer’s market, we have programs like List & Lock™, which will allow you to advertise discounted rates on your listings and sell faster without dropping the sales price.* We offer tailored loan options for buyers and sellers alike — we’re here to help!
*This lock cannot be transferred to another property address. While List & Lock™ can help buyers significantly, it is not a guarantee to lend. If a buyer is interested in purchasing the listed home at the advertised rate, they must still qualify for the loan. The benefit is that they won’t have to qualify for the loan based on the higher market rates; instead, they will be qualifying on the List & Lock™ rate. They will have several loan options to choose from through List & Lock™ -- Conventional, FHA, VA, and select adjustable-rate mortgages (ARMs). The same type of credit and discount can be applied to other loan programs, but rate adjustments could occur. If you’re concerned your closing could extend beyond the 60-day period, contact your loan officer to discuss extension possibilities.
