Here’s how we determine whether it’s a buyer’s or seller’s market.
I’m sure you’ve heard that we’re in an extremely strong seller’s market, but what does that mean? In a seller’s market, buyer demand exceeds seller supply, causing an increase in prices.
A seller’s market is caused by three factors:
1. An economic factor. This could be something like an increase in the job market.
2. Low interest rates.
3. Low inventory.
If seller supply exceeds buyer demand, it is considered a buyer’s market. This can also be caused by an economic disruption or higher interest rates. Real estate agents consider a market with seven months or more of inventory a buyer’s market, and a market with less than six months worth of inventory, like we’re in right now, is a seller’s market.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
