Is It a Buyer’s Market or Seller’s Market?

A buyer’s market happens when there are more homes for sale than buyers. Because inventory is high, buyers have more choices and stronger negotiating power.

Key characteristics:

• Many homes available

• Prices may decrease

• Homes stay longer on the market

• Buyers can negotiate price, repairs, or closing costs

Example:If a neighborhood has 100 homes for sale but only 40 buyers, sellers may lower prices or offer incentives to attract buyers.

Seller’s Market

A seller’s market happens when there are more buyers than homes available. Because supply is limited, sellers have the advantage.

Key characteristics:

• Low housing inventory

• Homes sell quickly

• Prices tend to increase

• Multiple offers or bidding wars are common

Example:If there are 20 homes for sale but 100 buyers, buyers compete and homes may sell above the asking price.

Balanced Market

A balanced market occurs when the number of buyers and homes for sale is relatively equal.

Typical indicator:

• Around 5–6 months of housing inventory

Market guide:

• 0–4 months inventory: Seller’s market

• 5–6 months inventory: Balanced market

• 7+ months inventory: Buyer’s market

✅ Simple rule:

• More homes than buyers → Buyer’s market

• More buyers than homes → Seller’s market