Is it a seller’s market? A buyer’s market? Depends on the day and which media outlet you happen to be listening to. One thing is sure the market is changing. Here are some ways to know what kind of market it is:
These are the signs of a buyer’s market
High inventory or more than six months of inventory currently on the market.
Sale prices are higher than active listing prices.
Lower closed sale numbers.
Declining median sales prices.
Higher DOM or days on the market.
Here are some signs of a seller’s market
Low inventory or less than six months of inventory currently on the market.
Sale prices are lower than active listing prices.
Higher closed sale numbers.
Increasing median sales prices.
Lower DOM or days on the market.
These are signs of a balanced market
Three to six months of inventory is currently on the market.
Sale prices are similar to active listing prices.
Stable sales numbers.
Flat median sales prices.
Days active on the market are approximately 30 to 45 days.
If you want to know how to figure out the months of inventory there is a simple way to do that.
Take the total number of active listings and the total number of sold or closed transactions on the market last month.
Divide the number of total listings by the number of total sales, which results in the number of months of inventory remaining. Then you can determine what type of market it is.
Koury Signoriello, New World Realty, 774.991.2579
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