What Type of Market Do We Have?

Here’s how we know that we’re in an extreme seller’s market right now.

There are five different types of real estate markets. We can have an extreme seller’s market, a moderate seller’s market, a mutual market, a moderate buyer’s market, or an extreme buyer’s market. This is often determined by how much inventory we have, also known as the absorption rate. Usually, we want to have between three and six months’ worth of inventory, which means if no other homes came onto the market, we’d run out of homes to sell within three to six months. 

In our current market, we have 1.4 months or five weeks’ worth of inventory. That puts us in an extreme seller’s market. We have very few people wanting to put their houses on the market, but we have lots of buyers for those homes. That’s making the market much more competitive, plenty of people have decided to hold off on buying a home until the market changes. However, it can take months or even a year for the market to change. 

You likely have multiple questions, and we answer them for people every day. So feel free to hit us up in the comments or send an email if you have questions about our market or real estate in general. Also, let us know if you have a topic you’d like us to discuss in a future blog. We’re always here for you.