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Understanding market situation before buying or selling

Understanding market situation before buying or selling

Many people sale or purchase properties in their life. Some people sell their properties at low prices while others buy on high rates. This is only due to lack of market knowledge. One should sell or buy property as per market situation. Here are the top points for understanding market situation before buying or selling properties.

Buyer’s real estate market

A market where properties are more than the buyers is known as the buyer’s market. In buyer’s market, buyers have better choice due to large number of properties. In buyer’s market, buyer always gets cheap properties due to strong bargain position.

Seller’s real estate market

A market where properties are less than the buyers is known as the seller’s market. In seller’s market, buyers have little choice due to limited number of properties. In seller’s market, sellers always get high prices for their properties due to the limited stock and high demand.

When is the right time to buy or sell a property?

Firstly, economic condition is the good indication of market situation. When economy is booming, people get jobs and move towards cities which increase the property demand. Due to high demand property price increases. On the other hand when economy declines, people shift to other areas. Due to this shift property demand and prices decrease.

Secondly, real estate price trend is also the good indication of market situation. Property price rise is the indication of low stock and high demand and vice versa. When property prices are rising, it’s time to sell properties to get good profits. Whereas, when property price is falling it’s time to buy property to get cheap deals.

Thirdly, housing stock is also the good indication of market situation. When housing stock is high, property prices are low. But when stock is low property prices are high due to high demand. Therefore, it is highly recommended to buy property when stock is high and sell property when stock is low.

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(14) Comments

  1. Was Malik

    on   said 

    Couldn’t this lowering in official property rates in six cities be a move by the govt to facilitate the big property crocodiles to pull their money out of property and invest somewhere else in the wake of an imminent property slump?

    Reply
    • Was Malik
      There are rumors like these, first heard when property taxes were raised in budget 2016. Its more of an effort by government to collect more tax.
      BUT
      Yes its true that real estate investment has been diverted to STOCKS.

      Reply
      • Zohaib Ahmed

        on   said 

        But this move will decrease the minimum amount of white money required to purchase a property. In my opinion it will have an effect on overall market. Kindly also shed some light on the Karachi and Islamabad property markets excluding DHA or Bahria.

        Reply
        • Zohaib Ahmed
          There are two markets. High end property market and market of genuine buyers. High end property market is hit hard due to PANAMA CASE DECISION. But normal market of genuine buyers is performing good.
          High end market is the market above 1 crore rupees. Normal market is less than 1 crore.
          Normal market is one which performs in every circumstances. As people have to live somewhere. Expensive property prices reduces the house size. So when property is expensive people abandon high end large properties and buy small properties.
          SO REAL REDUCTION BY FRB WILL NOT RAISE THE PROPERTY PRICE AS MAIN QUESTION IS THE SOURCE OF MONEY. SO COMPLETE BLOCKAGE OF BLACK MONEY.

          Reply
    • Was Malik

      on   said 

      Couldn’t it be a move by the govt to facilitate the big property crocodiles to pull their money out of property and invest somewhere else in the wake of an imminent property slump?

      Reply
  2. Muhammad Azeem uddin

    on   said 

    Dear sir,

    what is your prediction of prices for the first quarter of 2018. kindly also explain what will impact on real estate prices after stop of financial support from USA.
    Regarding market situation prices are not dip as we are expecting after panama case decision, high debt, and trade deficit.

    Nothing have deep impact on market prices ?

    Reply
    • Muhammad Azeem Uddin
      Pakistan property market is now in the crisis phase.
      AFFORDABILITY CRISIS
      As NAB/FBR/SC are handling the cases of black money, no one can invest with black money in real estate sector. As every one has to provide the evidence of income.
      Without investment in reality sector property prices are falling.
      NEW TRENDS
      Honest tax payers have low affordability. So affordable plots/houses priced less than 10 million are performing good. But high end luxury property price is down as no one can buy these properties with white money.
      Property prices are falling and will keep falling to the point where honest tax payers can buy again.
      ECONOMIC MELT DOWN = LOW PURCHASING POWER = LOW PROPERTY PRICE

      Reply
    • Zahid Ali

      on   said 

      Property price and gold price usually doesnt increase together. In the last decade, from 2007 to 2011, gold prices were increasing by leap and bound and made a peak of little less 2000 dollar per ounce in 2011. During that period, the real.estate price were almost stagnant. The current price of gold is around 1300 dollar per ounce and it made the lowest of around 1050 dollar per ounce. Then from 2011 to 2016, the gold price keep on decreasing and real estate price were increasing during this period. From the above explanation, one may deduce that next five years are of gold and interest rate, while stock amd real estate will not deliver in next five years.

      Reply
        • Rajab

          on   said 

          Your advise on LDA city Lahore project, is it advisable to invest, as people are talking about development and possession in a year time ? if your ans wer is yes then how you see prices level after ballot, can it be estimated ?

          Dha Gujranwala, how is the progress there and advise the reason of price increase.

          Thanks

          Reply
          • Rajab
            LDA City has many problems like availability of LAND. Hope you understand.
            DHA Gujranwala is good at the moment as it has launched 5 MARLA Plots at very affordable prices.
            Moreover DHA Gujranwala is among few investments especially when NAB is investigating 200 illegal housing schemes in LAHORE.
            Hope you understand what I mean.

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