The one question we seem to be hearing over and over again is, "How's the Market?"
It's a great question, given that market conditions play an important role in property prices, competition and average selling times.
The market can typically fluctuate within three types of market conditions:
- 1. A Seller's Market,
- 2. A Buyer's Market, and
- 3. A Normal or Balanced Market
One Way to Determine Market Conditions
A good indicator of market conditions is to interpret the number of months of listing inventory on the market:
- 4 to 6 months of inventory equals a Seller's Market
- 6 to 8 months of inventory equals a Normal Market
- 8 to 10 months or more equals a Buyer's Market
So How is This Arrived At?
Take the total number of listings on the market and divide that by the average number of sales per month. This gives the number of months of listing inventory.