A seller’s market means that there are more buyers than sellers, which means sellers can raise their prices and be very selective on the terms of a deal. You can recognize a seller’s market by how long the average house stays on the market. If there is a low inventory of homes available and the existing inventory sell within 30 days, it is considered a seller’s market.
On the other hand, a buyer’s market homes are taking a lot longer to sell and there is lots of inventory available. In a buyer’s market, sellers are usually more open to negotiating on the terms of the deal.
So you can see that in a buyer’s market, it’s a better time to buy. This is not to say you can’t buy in a seller’s market, buy your options are a lot better in a buyer’s market. Right now in 2011 we are in a buyer’s market. This is an excellent time to buy and get a great deal.