Buyers’ market, sellers’ market, and balanced market are real estate terms that are used to define month’s supply of inventory with regard to who has the advantage in a sales transaction. This number is based on the current number of homes for sale in a given market and the past absorption rate.
Typically, a seller’s market offers buyers up to 4 month’s supply of inventory. The seller has the advantage in this situation because there are fewer homes for sale than there are buyers looking for them. The increased demand with lower inventory levels leads to shorter list time, multiple offers, and, in some cases, homes selling above list price.
In a buyer's market there are more homes for sale than there are buyers looking for them. This decreased demand with higher inventory levels leads to longer days on the market, fewer and often lower-priced offers, and price reductions. In this scenario, the buyer has the advantage. Over 6 months of inventory is considered a buyer’s market.
A balanced market is considered healthy with a 4-6 month’s supply of inventory. Neither the buyer nor the seller is considered to have an advantage over the other in a balanced market.Currently there are only 33 single family homes on the market in Acton, and of these, 8 are in an over 55 neighborhood. With so many young families wanting to move to Acton for the schools and life style, we now find we have less than 2 months of housing inventory. Certainly after the holidays and over the next month or two we will see more homes being listed for sale. Homes in excellent condition and priced well will be the first to sell, and may indeed generate over asking prices.
Looking at the chart we can see that the number of homes listed for sale was down by 18% from the previous November. The number of sold properties is up 6% from one year ago. If you have questions about how this information might relate to the value of your home, I'd be happy to work with you to figure that out.
Betsy Purcell - Keller Williams Realty Boston NW - 978-758-7414