Following many years of real estate in both emerging and established markets around the world situated within a ‘seller’s market’ environment, the transition into a buyer’s market has offered a distinctive turn-around.
A buyer’s market is determined when there is an excess supply over demand, resulting in lower property prices and extensive advantages to those with the ability to enter the market as a buyer.
Due to the worldwide financial crisis, many owners have been forced into a position of necessity to sell their properties, creating an excess of units available. With an extensive number of properties for sale, the buyer’s market environment has evolved.
Many governments around the world have created additional benefits for those in a position to purchase. Reductions in associated purchasing costs, reduced interest rates on mortgage loans and tax rebates have all contributed to stimulus packages designed to attract buyers, assisting the growth of the market.
As a direct turnaround from the past decade of a predominantly seller’s market environment, property buyers are now in complete control. The extensive number of properties entering the market has lead to price reductions in efforts to sell, competing with the abundance of properties in surrounding areas.
Tightening of lending criteria and extensive job losses has reduced the potential for many to enter the property market. These issues have also been a direct result of the excessive supply of properties currently on the market. Due to the requirements to sell properties to ease financial burdens, buyer’s are in a position of full control.
Advantages to buyers are extensive as the reduction of competition from other buyers in the market has reduced the pressure for buyers to make a fast decision. The exceptionally low prices have also enabled buyers to benefit from additional capital appreciation in the coming years as the market returns to normal.
Negotiations can also be made, depending upon the circumstances additional extras can often be requested on the re-sale market, such as furniture included within the sale price, or the payment of some associated buying fees by the seller.
Buyers realise that the majority of people selling properties in the current market conditions are in a position where they are forced to sell. This additional advantage has created yet another benefit to those in a position to purchase.
As incentives for repairing the issues that caused the initial downfall of the real estate market continue to be generated, the buyer’s market conditions will not be available indefinitely. Taking advantage of the present market conditions will enable the best investment and lifestyle opportunities that have been or will be present for many years.