What is a seller’s market?

You may have heard realtors or other people who are “in the know” about real estate say, “It’s a seller’s market!”, but what does that really mean?  When the market favors the seller, it means that there are very few houses for sale from which the buyers may choose.  This is also referred to as “low inventory”, just like in a store if the shelves needed to be restocked.  In this situation, the buyers find themselves in bidding wars with other buyers for the most desirable properties.  This is great for the seller as they sit back and watch the buyers bid higher and higher, even receiving above asking price at times.   To determine if it is a buyer’s market, a seller’s market or a balanced market, real estate professionals look to see how many months worth of inventory are available.  In other words, how long would it take to sell all the homes that are currently available?  Six months worth of inventory is considered a balanced market.  Anything below six is considered a seller’s market (most recently the inventory has fallen as low as 1 1/2 months!) and anything above six months of inventory favors the buyers.  So there you have it!


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