"It is a buyers market", what does that mean?

"It is a buyers market", what does that mean?

        When you look at a buyers market or a seller market it is based on that old adage supply and demand. As the number of homes on market increases, you can more easily make a deal. The assumption rate is dated in months, and is described as: If the current number of listings were to be sold, and the current rate of sales were steady it would take “X” amount of months to sell all homes currently on market.

• A sellers market would be 4 months or less
• A Buyers market would be about 7 months or higher
• Between 4 and 7 months, it is what considered a “pure market” where neither the buyer nor the seller are at any great advantage.

This year we’ve been averaging about an 8 month assumption rate, this means that the buyers do have a slight advantage when buying as there are more homes to choose from, and ultimately more competition. It is best to sell and buy in a buyers market when you’re moving up. Say due to market conditions you lose 3% on your $300,000 home ($9,000) when you move up to your home at $400,000 that same 3% would $12,000. In this circumstance you could make $3,000 where in a pure market you would have not gained anything, and in a sellers market you could have lost $3,000.

If you're interested in purchasing, you should take a look at the program offered exclusively through Prudential