There are three different types of real estate markets available: a buyer’s market, a seller’s market, and a balanced market. What is the difference between each one?
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The first market is the buyer’s market. One indicator of a buyer’s market is high inventory, which means there are a lot of homes on the market for sale, giving buyers a lot of options. Usually, a buyer’s market will have more than six months of inventory. The number of home sales also goes down during a buyer’s market.
On the other end of the spectrum, we have a seller’s market. Seller’s markets have low inventory. Generally, there are fewer than six months of inventory available on the market. There may be a lot of pre-qualified buyers out there but there simply is not enough supply to meet demand. There is still a large number of sales during the seller’s market because once a property goes up for sale, buyers hop on it really quickly. As a result, we often see a lot of multiple offer situations.
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We are in a balanced market that is headed towards a seller’s market.
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In between the two is the balanced market. In a balanced market, there are around three to six months of inventory available. Sales are stabilized and the number of homes on the market remains the same for a couple of months.
Right now, we are in a balanced market with 3.7 months of inventory. On average, we have seen 100 sales each month since July. There are 376 homes on the market right now.
Although we are in a balanced market, we are gently moving towards a seller’s market. If you have been thinking of selling your home, now would be a great time to put it on the market.
If you have any other questions about our current market or about real estate in general, give us a call or send us an email. We would be happy to help you!
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