The housing market fluctuates all the time, which can impact both buyers and sellers. While both buyers and sellers are looking for the best deal, it's important to understand how the current market could affect your decisions.
If you're contemplating buying or selling a home, you should understand how the housing inventory impacts you.
When is it a buyer's or a seller's market?
A buyer’s or seller’s market is determined by the housing supply, or how long it would take to sell all the houses currently for sale.
You can calculate this by dividing the number of homes for sale by the number of houses sold in a given month. For example, if 300 houses were for sale last month but only 100 sold, that would equal a 3-month housing supply (or seller's market). Keep in mind, the housing inventory may vary from city to city and may also depend on the time of year.