The Different Types of Real Estate Markets

Explaining the differences between buyer’s, seller’s, and balanced markets.

Today I'm here to talk to you about some real estate lingo—like are we in a buyer's market? Are we in a seller's market? Or are we in a balanced market? I'm here to educate you and let you know what those terms means for your life.

1. A buyer’s market is anytime when there are six or more months of inventory. When you’re in a buyer’s market, that means prices are going down.

2. There are five to six months of inventory in a balanced market. At this point, prices are staying stagnant.

3. When there are zero to four months of inventory, you’re in a seller’s market. When you’re in this type of market, prices are typically increasing.

Let me give you a real-life example: I was sitting down with a seller last week and we were looking at this kind of data for their house and we noticed that there were 30 homes sold in the last six months—meaning five homes are selling each month. We also saw that there were 10 houses currently on the market, which means we have a two-month supply of inventory. That information gives us the ability to price the house accordingly.

"Our market is different in every area."

Another thing I would say about this topic is as you're going through the process of figuring out what kind of market you’re in, it's critical to have a Realtor talk to you about what kind of market you're in. We're seeing some sections starting to transition into a buyer's market, while others are hot like a seller's market, so having a realtor come in and educate you on what's happening in your specific market is important.

The second thing I'll say is to make sure your price point and school district are specific. Knowing the price point and knowing the area will be key factors in making sure you're pricing your home correctly.

If you have questions or if you want one of my realtors to come out and talk to you about how to price your home and what kind of market you're in, we’d be glad to talk you through the process. Just call or email; I look forward to hearing from you!