Buyers vs Sellers Market

What is the difference between a Buyers Market and a Sellers Market? These terms simply indicate a slight advantage in one party over the other. To find out who has the advantage in the real estate market we use something called the absorption rate. The absorption rate is a calculation that tells us how long it would take to sell the inventory we have if we were to stop taking new listings. For example, if we had 100 homes for sale and we are currently selling 50 per month, we would have 2 months of inventory. The general rule is more than 6 months of inventory indicates a buyers market and fewer than 5 months would be a sellers market. Anything in the 5-6 month range would suggest a balanced market. This does not mean prices will jump or drop based on the market (although they could) Rather, as inventory fluctuates, so do options for both buyer and seller. It's important to keep in mind that it is strictly a guideline we use to see which party has the advantage in the current market.

Find out what market we are in and view the Current Inventory