In the past I have written a blog on whether the Raleigh area was a buyer's market or a seller's market.  When it posted we were currently a balanced market, which means buyers were about equal in number to sellers.  Well things change and currently it is safe to say the Raleigh area Real Estate scene is in a buyer's market.  How do you determine?  Well, like anything in Real Estate you may have a few professional opinions differ, but most opinions on this subject should be fairly close together. 

Absorption Rates are determined through various equations to figure out how many homes on the market are being "absorbed" or sold within a given period of time.  Let's take a year for example to make it easy.  First you would have to determine the number of homes that sold in the 12 months you are measuring....let's say Jan-Dec.  Take that number and divide it by the number months...which is 12.  That should give you the per month absorption rate.  Take that rate and divide it into the current number of listings and that will give you the months supply of homes.  Supply of homes is a way professionals will determine a market to be favorable to a buyer or a seller.  If supply is 6 months it is considered to be balanced.  Anything over 6 months is a buyer's market, anything below six months is a seller's market.  Right now the Raleigh area is just over 6 months in supply so we are considered a buyer's market.   BUT it can change, so stay posted.  For more information visit us here.