Buyers’ or Sellers’ Market?

In the property sales market, the market is either a sellers’ market  or a buyers’ market depending on the market trends that are prevailing  at that particular time. The definition of these two markets and what  determines their existence is as outlined
below:

Buyers’ market:

Supply is greater than demand thereby giving buyers the advantage to negotiateprices favourably for themselves.

Sellers’ market:

In a sellers’ market demand is greater than supply meaning that there  are more buyers than properties available on the market, and they sell  quickly as buyers are more likely to make reasonable offers.

Due to the current uncertainty within our economy the property market  is hanging in limbo as today it may stand to be the buyers’ market and  vice versa. Many policies have changed and therefore there is a higher  demand for property as compared to the properties availability on the  market. Buyers aretrying to offload their funds held by investing in  immovable property. This high demand and shortage of reasonable priced  properties has seen different agents partnering to achieve sales which  was not a common thing in the past. Because of this Real Estate  governing body continues to urgeregistered agencies to partner with  other registered players to avoid promoting the infamous bogus agents as  this shortage also creates room for them to flourish and take advantage  of the situation. The number of buyers being greater than the stock  available means people have funds available in banks and mortgage offers  which then forces them to settle for what is available or nothing at  all.

As a nation we remain optimistic as these current difficulties may  very well be the birthing pains of excellent economic reforms that will  see all sectors of the market eventually prosperas nothing comes easy in  terms of development. The three tier pricing system being fuelled by  the illegal black market trading of money, inter alia, leaves sellers  and buyers in a dilemma in terms of property pricing for sellers and the  non-acceptance of mortgage bonds by most sellers for buyers. The daily  changes in the rates make the situation untenable and therefore leaves  buyers stranded with the majority of sellers pulling their properties  off the market awaiting certainty and sanity to the situation. We find  therefore that our current economy is not in line with our ordinary text  book economics therefore as we go we, as agents, are learning new  things daily and we also strive to conduct our business lawfully and  with integrity ensuring we keep our doors open to our clients for  further business.