MARKET UPDATE: BUYER'S OR SELLER'S MARKET?
Your Guide to the Housing & Mortgage Markets
BUYER'S MARKET vs. SELLER'S MARKET
Housing inventory measures how many months it would take to sell all the houses currently listed for sale, at the current pace of home sales. For example, if there are 300 homes currently listed for sale, and an average of 100 homes are selling each month, there would be a three-month housing supply. This is because it would take three months to sell all the homes currently listed for sale.
A buyer’s market is generally anything more than 6 months. If the inventory numbers are higher than 6 months, buyers generally have more negotiating power than sellers. In that case, home prices may move lower, and sellers will most likely accept an offer for less than the listing price.
A seller’s market is generally anything less than 6 months. If the inventory numbers are less than 6 months, sellers generally have more negotiating power than buyers. In that case, home prices may move higher, and buyers may be competing with multiple offers on the house they want.
BUYING CONDITIONS HAVE IMPROVED vs. LAST YEAR.
Inventory levels are currently 3.5 months across the country, according to the National Association of Realtors. This is up from 3.0 months of inventory at this time last year.
If you're a seller, you may have to be more competitive with how you price the house and potentially offer some concessions like paying for the buyer's closing costs. If you're a buyer, you may have slightly more inventory to choose from but don't expect prices to tumble anytime soon. In fact, it may take a few years for the housing supply to increase enough to meet demand. See my articles about housing supply and demand for more details about the demographic trends that are driving current market conditions. Contact me for more info or to evaluate your options!
THAT'S THE CURRENT HOUSING INVENTORY, WHICH IS STILL TIGHT, BUT BETTER THAN LAST YEAR.
Source: Momentifi