There are plenty of resources out there, written by investment experts and Oakville real estate agents that will help you buy a home in the big city. Unfortunately, many insiders fall into the habit of speaking in realtor lingo, which is unfamiliar to first time home buyers. If you're looking into buying a home and are confused by the terms "buyer's market" and "seller's market," we should be able to help you understand what this means, both as a concept and in terms of what it means for you, the buyer.
A buyer's market simply refers to any situation in which the buyer would have an advantage over the seller when conducting a real estate deal. This usually happens when real estate prices are low and houses are less in demand. This could mean that there are more houses in the Kitchener Waterloo real estate listings or less, depending on how home owners react to the bad prices (i.e. whether their instincts are to sell up and move or stay put and hope they go back up) but will tend to result in more listings because homes spend longer on the market.
What a buyer's market means for you is that you will, in all likelihood, be able to secure the Toronto condo you want for less. When prices are low, homeowners are unable to charge as much as they would like for their properties since buyers have the choice of walking away from the deal and looking for a better one. In buyer's markets you will be able to afford a larger house than you normally would, but beware of doing so because if the prices go back up you may no longer be able to afford your property taxes.
As you might expect, a "seller's market" delineates a situation in which the reverse is true. In a seller's a market, the current owner of the house has the advantage over the people who are looking to buy. This is because real estate prices are high due to housing being in high demand. Many people will be looking for homes all at once, and usually there will be more people than there are houses. In this situation you will see a lot of benefit to the service industry, who do Edmonton home evaluations, sell real estate, or do inspections.
What this means for you as a buyer is that if you find a home you like, you will probably have to compete for it with other buyers. The result: an Ontario waterfront cottage for sale will cost you more, in terms of money, time, and effort. You can expect to pay more and go to greater lengths, such as making friends with the seller, to convince them to choose you.