Quote:
Originally Posted by margaretmattson
A sellers market usually occurs when inventory is low and demand is high. This happened in the Village of Richmond. There was a list of 30 interested buyers for nearly every available home. When this occurs, there will be no discounts given on the price of the home. If it is a preowned home, the asking price could get raised.
This is not what is occurring at the moment. Inventory is sitting and prices of homes are being reduced. Sellers who are asking for more are doing it without concern of the downward.trend. They believe they can find one buyer who is willing to pay much more for the same model of home. Like I said, sometimes this strategy works. However, the buyer will be sitting in a home that is worth less than he/she paid. Buyer Beware!
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Again, as a layman, your definition makes sense to me. Obviously even to me is the dynamic that the higher the supply relative to demand, the more pressure there will be to price lower, and vice versa to all that.
I'd just never heard a seller's market so strictly defined as a market wherein asking price always invites a bidding war. I'm sure that's a sign of an extreme seller's market, but I wouldn't have thought that was, by definition, a requirement.
It seems to me that being "overpriced" would be to ask considerably more than what the recent comps would indicate. I get the impression that some people use the term to mean "more than what I think anyone should pay", or "more than I'm willing to pay".