People always ask me whether we are in a buyer’s market or a seller’s market, and so today I am going to bring you my answer.
First, though, let me explain what each of these terms means. A seller’s market is defined as one where there are less than six months of available inventory. A buyer’s market is defined as one with more than that.
Currently, our area has just about 1.7 months of inventory, meaning that if no other homes came on the market in that time, we would completely run out of listings. In other words, we are in a strong seller’s market.
The good news is that about 500 or 600 homes are coming to our market each month, and the number of listings available in our market at any given time has been steadily rising. This is because home prices have also risen.
That said, we are headed for a shift, and there are two reasons why:
- Interest rates have gone up. As the U.S. bond rate has gone up and investors begin to shift their focus to this area, rates will rise as well.
- Affordability is going to drop.
With all of this in mind, buyers and sellers need to make their move as soon as possible in order to capture the best deal from our market. Conditions are not going to last.
If you have any other questions or would like more information, please feel free to give me a call or send me an email. I look forward to hearing from you soon.