The 3 States of the Real Estate Market (and the Transitions Between Them)
In her first year as a REALTOR®, Veronica Murphy saw the market flip completely. She started in a buyer’s market, watched it become balanced, and then saw it turn into a seller’s market.
She thought she had seen it all. Then the market showed her one more thing: the transitions.
The three states of the market
1. Buyer’s market
- More homes for sale than buyers
- Prices soften and homes take longer to sell
- Buyers can negotiate and include conditions
2. Seller’s market
- More buyers than homes for sale
- Prices rise and homes sell quickly, often with multiple offers
- Buyers compete, sometimes with fewer conditions
3. Balanced market
- Supply and demand are roughly even
- Prices are relatively stable
- Neither side has a big advantage
Don’t forget the transitions
The market doesn’t just jump from one state to another. It transitions, and those transitions can be the trickiest times to buy or sell.
Going from a hot seller’s market to an ice-cold market is a big shift. During a transition:
- Sellers may still expect peak prices that buyers won’t pay
- Buyers may hesitate, unsure if prices will keep dropping
- Old strategies stop working, like pricing low to spark a bidding war
Why it matters to you
Knowing which state the market is in, and whether it’s changing, helps you make better decisions about pricing, offers and timing. That’s where an agent who’s actively working in the market every day makes a difference.
Want to know where the market is right now?
Ask us for an honest update on your area of Niagara.
Call 289-276-1716 or contact us.
