If you’re deciding whether or not to buy or sell a home, you probably know that market conditions affect the outcome. It’s not always easy, however, to know whether a real estate market is a buyer’s or a seller’s market. That’s why we’ve broken down everything you need to know about the market to answer the question, “Is Pawtucket 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 Pawtucket, RI is a buyer’s or seller’s market?
There are several things that influence what type of market an area is experiencing:
- Real estate inventory
- Recent sales
- Time on market
- Market trends
All of these factors combine to make up the real estate market in an area.
There are some pretty big differences between a buyer’s market and a seller’s market. Knowing these differences ahead of time can help you save time and money on the purchase or sale of a home.
A buyer’s market has conditions that favor the buyer. This means that there is higher demand for homes than the number of homes available for sale. This leads to lower prices and more choices of homes to purchase. It’s also important to note that potential homebuyers have greater power during negotiations. This leverage can be used to get a better deal or insist that certain repairs be made prior to closing. Since homes don’t sell as quickly, homebuyers can take their time putting in an offer.
A seller’s market, on the other hand, favors the seller. This means that there is a higher demand to buy than there are homes for sale. Sellers will enjoy higher purchase prices and possibly even bidding wars that will drive up the price of their home. A seller’s market also means that seller’s have the upper hand in negotiations. In a seller’s market it’s important for a potential homebuyer to act quickly as soon as a property becomes available on the market, before it is either snatched up or a bidding war starts.
Is Pawtucket, RI a Buyer’s or Seller’s Market?
So, is Pawtucket, RI a Buyer’s or Seller’s Market? As of 2022, Pawtucket, RI is a seller’s market. That’s good news for sellers and bad news for homebuyers – prices are higher and homes sell faster.
For example, in September 2022 homes were sold on average in 28 days and for 61.2% above asking price.
What causes an area to be a seller’s market? Two main reasons: inflation and mortgage rate hikes. Both have been present in 2022.
The Federal Reserve has increased mortgage rates with no relief in sight for the remainder of the year. Inflation is at its highest in 40 years. With every day expenses being higher, potential homebuyers are less likely to be able to afford a higher mortgage rate or a down payment.
Buying or Selling a Home in Pawtucket, RI
In a competitive seller’s market, an expert realtor is invaluable. With Your Home Sold Guaranteed Realty – The Nathan Clark Team, we can give you first access to the newest listings giving you an edge over other homebuyers. Save money and beat out the competition when you use our expert realtor team.