Do you know how to tell if we’re in a sellers or buyers market? The quickest way to get an idea is not actually based solely on prices or market times, but on the level of inventory. This number is determined by the market absorption rate and the number of active listings in a local mls. Absorption rate is a fancy way of saying how many houses are selling per month.
A balanced market is considered to have a 6 month supply of inventory. A sellers market would have less than 6 months and a buyers market would have more than 6 months’ supply. According the Charlotte Regional Realtors Association, our area market currently has a 5.5 month supply of active listings. This shows that we are in a healthy market with a slight tendency to a sellers market.
The closer we are to that 6 month supply mark, the stronger our market is. Right now what it boils down to is that buyers are purchasing homes for a fair value as opposed to a few years ago when people were getting rock bottom deals. On the seller side it means they are selling homes for a fair price and we’re seeing a stronger trend to receiving multiple offers on a listing which is great for sellers! Overall it is a great time for either buyers or sellers to jump into the market.