I am frequently asked whether it is a Buyer's market or Seller's market and what the demarcation line is for real estate in Ocean City, Maryland and the surrounding coastal communities. In this article I will explain Buyer's markets, Seller's markets, how they are established and what you can expect in each one.
Absorption rate will be referenced several times throughout this article. Absorption rate is the time it would take to sell all of the homes and condos for sale in Ocean City at any given time based on the current sales pace at that time. The current sales pace is the average monthly real estate sales for the most recent twelve month period.
Seller's markets occurs when Buyer demand exceeds the supply of homes for sale. In the Ocean City real estate market a Seller's market occurs when the absorption rate is less than five months. Seller's markets are competitive amongst Buyers. There will typically be multiple offers submitted on the more desirable real estate listings that come on the market. Buyer's will compete in Seller's markets based on offer price, contract terms and contingencies.
Buyer's markets occurs when the supply of homes for sale exceeds Buyer demand. A Buyer's market occurs in the Ocean City real estate market when the absorption rate is greater than seven months. Buyer's markets are less competitive than Seller's markets and are an ideal time to buy. Buyers will have more leverage in negotiating price, contract terms and contingencies in a Buyer's market.
Neutral markets occur when Buyer demand and the supply of homes and condos for sale in Ocean City are in balance. A neutral real estate market occurs in Ocean City when there are five to seven months worth of inventory on the market. Buyer and Seller advantages in a neutral market will vary based on the property. If the property is a desirable listing in a market area with low inventory, the Seller will have the negotiating advantage. If the property is in an area with ample inventory, the Buyer will have the negotiating advantage.
Having been a full-time real estate agent since 2005, I have seen a variety of market cycles. Through this experience I have several "tried and true" strategies to successfully advise and navigate my clients through these various real estate markets. If you would like to discuss buying or selling real estate in Ocean City, Maryland or the surrounding areas in greater detail, feel free to contact me directly anytime at 443-614-9179 or via email below.