Understanding the Current Market

  • September 14, 2015
  • News
Understanding the Current Market


The real estate market, like any other market, is subject to constant fluctuations which can be affected by a multitude of factors. These range from regional and national economic conditions, down to seemingly smaller details such as the time of year. When you’re in the market to buy or sell, it’s crucial to understand the state that the market is currently in so that you can make the most beneficial financial decisions for you and your property.


In a buyer’s market, supply exceeds demand. This gives purchasers the advantage, as the surplus of properties on the market may force sellers to lower their price or offer incentives in order to move their property.

A seller’s market, on the other hand, happens when there is more demand for property than supply of properties on the market, giving sellers the opportunity to raise prices and receive multiple offers.


The current market conditions in California are largely affected by affordability. Unfortunately there has long been a lack of affordable housing, especially in coastal areas. Californians are choosing longer commutes, smaller homes, and even delaying home ownership as a result of the steep prices. If more housing were to be built, the situation could be somewhat relieved by offering more jobs in the construction industry as well as increasing the supply of housing – thus lowering prices and allowing more individuals to purchase property.

Until that happens, though, we’ll still be seeing lots of renters and fewer home buyers – making now a great time to invest in real estate. Happy investing!


Questions about investing in real estate? Ask the experts at Lyon Stahl today! Contact [email protected] for all your real estate investment needs.