Whether you are buying or selling a home, it’s important to know the state of the real estate market in your area. So what’s the difference between a buyer’s and seller’s market and how does that affect your real estate transaction? Is Cranston, RI a buyer’s or seller’s market in 2022?
The Difference Between a Buyer’s and Seller’s Market
So how do you know if Cranston, RI is a buyer’s or seller’s market? First, let’s explore the differences between each type of market and what influences it.
There are several factors that are considered when determining what type of market an area has. Those factors include:
- Real estate inventory
- Recent sales
- Time on the market
- Market trends
All of these factors come together to create either a buyer’s or seller’s market.
If the area you live in is a buyer’s market, it basically means that the supply of homes is greater than the demand for them. So what does that mean for you? In a buyer’s market, homebuyers can enjoy lower prices and greater power negotiating aspects of the sale, like having repairs completed before the sale. Homes also don’t sell as quickly because there is a broad range of options available. Since homes don’t sell as quickly, homebuyers can take their time before submitting any offers.
A seller’s market, in contrast, favors the seller. This means that there is more demand to buy houses than what is available. For buyers, this can mean higher prices and expensive and stressful bidding wars on the limited number of homes that are for sale. It also means that homebuyers don’t have the same leverage to negotiate that they would in a buyer’s market, so things like repairs are often left to the buyer to complete – the sale being “as is”. Because demand is so high, it’s important for buyers to act fast to snatch up a good deal before a bidding war starts.
Is Cranston, RI a Buyer’s or Seller’s Market
So is Cranston, RI a buyer’s or seller’s market? As of 2022, Cranston, RI is a seller’s market. This means that:
- Supply is less than demand
- Prices are higher
- Homes sell faster
So what is causing Cranston, RI to be a seller’s market? The two main reasons are inflation and mortgage rate hikes.
Inflation has skyrocketed to its highest rate in 40 years. Since the price of all goods and services are increasing, potential homebuyers have less money to spend on a down payment or higher monthly mortgage payments. This means that they are less likely to purchase a home during a seller’s market.
Another reason that Cranston, RI is a seller’s market is because the Federal Reserve has increased mortgage rates. These rate increases are expected to continue throughout the rest of 2022.
Buying or Selling a House in Cranston, RI
Seller’s markets are extremely competitive. It’s important to get to listings first as homes sell fast and bidding wars drive up the price. To be the first offer on the table, it’s extremely helpful to have an expert realtor by your side. At Your Home Sold Guaranteed Realty – The Nathan Clark Team, we have access to all the newest listings which gives you an edge over the competition. You can save time and money by using one of our expert realtors.