As in any trade or industry, various factors and current economic standings influence the property market specifically, and changes the trend or shape it takes. “Buyer's and seller's markets don't last forever. It's hard to predict what the market will do with any accuracy, and things can change slowly or quite rapidly - depending on the economic and political outlook,” says Williams.
Wendy Williams, Sales Director of Engel & Völkers Doutern Africa, says when buying or selling your home, you should consider whether it's a buyer's or seller’s market, and how this would affect the offers received on your house, as well as the new home you want to obtain.
“Buyer's and seller's markets don't last forever. It's hard to predict what the market will do with any accuracy, and things can change slowly or quite rapidly - depending on the economic and political outlook,” says Williams. “You might end up waiting months or years for things to change, and when circumstances do change, it may not be in your favour.”
In a buyer's market there is more supply than demand, meaning there are more people looking to sell houses than there are people looking to buy.
“In a buyer's market sellers need to ensure that the pricing of their property is fair and on par, as buyers have more options and therefore will not settle for overpriced property,” says Williams.
“Staging your home in the right light could also play an important factor to ensure that you can set the scene for a buyer to want to live there."
This is the ideal situation for buyers as their options are significantly better.
She says a seller's market is just the opposite - the demand is larger than the supply.
“If stock is low, buyers are more likely to spend a little extra to ensure that they get the property they want,” says Williams.
“Sellers will often see several buyers competing to purchase their property, which drives up the price. This is the ideal situation for sellers because they get great prices on their homes.”