In today’s video, I discuss whether we are in a seller’s market or a buyer’s market.
Having between one to three months of inventory indicates that it’s a “seller’s market.” This is when there is little inventory available and strong buyer competition. Four to six months of inventory is a “neutral market”; seven months or more of inventory is a “buyer’s market” where there is more seller competition. We are currently at around 3.8 months of inventory, which is a seller’s market. However, this time last year, we were at around 3.5 months of inventory, and in 2016, we were around 3.3 months of inventory at this time of year, indicating that the market is trending towards a neutral market.
What does this mean for you?
If you’re selling your home, or thinking of selling your home in the near future, you may want to prepare your home for the market sooner rather than later. It could take longer to sell and you may face more competition among homeowners selling similar homes in your area.
While things are shifting in the right direction for buyers, interest rates are also on the rise, which will make mortgage payments higher.
For a free no-obligation consultation, contact me at 415-993-0618.