I keep seeing rei agents saying in there ads that our area is a very active market, that would mean the same as a hot market correct?
Also a buddy of mine told me that our area used to be a buyers market, now its turning into a sellers market,
what does both statements above mean for someone trying to start out wholesaling? Your replies are greatly appreciated.
I don’t think an “Active” market necessarily means that you are in a hot market. A lot of activity doesn’t equate to good activity.
However, when you combine the two statements “active market” with it being a “sellers market.” It could mean 2+2= ‘hot market.’
A sellers market would basically equate to there being more demand than supply. With limited supply, a seller may ‘demand’ more for the home than it is physically worth because of perceived value from the buyers. You will often see multiple offers and home’s selling for more than they were listed.
A buyers market: there is more supply than demand. Buyers have more choices, therefore have more negotiating power. A seller may list the home and have a hard time receiving any offers thus starts to make concessions and lowers the price.
My market in CA has switched from seller to buyer. Condo prices have dropped and people are being more realistic about values. Not as active as it once was but still active, although it certainly isn’t hot.
Good luck!
The problem is that “active” doesn’t have a true definition. Sometimes, active market means lower inventory. The homes that are listed are sold more quickly and are not staying on the market long.
In Austin, we are having an “active” market because inventory is now lower than it has been since the early 2000s, before we had the tech bust. For wholesalers, this could be good because there’s less available homes on the market. Prices and values are increases because demand is high and there’s less available.