This is a highly competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before. Typically, multiple offers will be made on each house during a hot market, and more often than not, homes will sell for more than the asking price. It is even more crucial to be prepared and ready as a buyer when the market is hot. It can be easy to get caught up in the bid for a home, but if you are prepared (pre-approved, solid in price range, realistic about your needs), it is easier to remain focused on your housing needs and price range.
Many homes are available in the stock market, and an average number of buyers. This market does not necessarily favor the buyer or the seller. A seller may not have as many offers on their home, but they may not be desperate to sell either. Again, it is the buyer’s responsibility to be prepared. During a stock market, the chances of negotiating are higher than in a hot market. As a buyer, you can expect to make offers lower than the asking price and negotiate a price at least somewhat less than what the sellers are asking.
In a cold market, houses may be listed for more than a year, and the prices of homes listed may drop considerably. This market is advantageous to the buyer. As a buyer, you have the time to make an offer that works in your best interest. It is not uncommon to low-ball and find that sellers are accommodating to meet your needs. Keep in mind that even though this market is an excellent time for buyers, you do not want to lose your dream home by being unrealistic. Your goal is to get your dream home at the best possible price.