When you’re thinking about buying or selling a home, understanding the type of market you’re in can make all the difference. Knowing whether it’s a buyer’s market or a seller’s market helps you set realistic expectations, make smarter offers, and negotiate with confidence.
1. Check the Inventory Levels
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Buyer’s Market: There are plenty of homes available, which means buyers have more options and sellers may have to compete on price or offer incentives.
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Seller’s Market: Homes are in short supply, and buyers may face bidding wars.
2. Look at Average Days on Market (DOM)
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Longer DOM: Homes are taking longer to sell—this usually points to a buyer’s market.
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Shorter DOM: Homes sell quickly when sellers have the upper hand.
3. Watch the Price Trends
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Falling or stable prices: Advantage buyers—there’s room to negotiate.
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Rising prices: Advantage sellers—demand is pushing prices up.
4. Pay Attention to Interest Rates
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Lower interest rates often attract more buyers, increasing competition and creating a seller’s market.
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Higher rates may cool demand, giving buyers more negotiating power.
5. Months of Inventory Rule of Thumb
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More than 6 months of inventory = buyer’s market.
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Less than 6 months of inventory = seller’s market.
✨ Why This Matters
Knowing the type of market helps you strategize:
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Buyers: You’ll know whether to move fast or negotiate for extras.
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Sellers: You’ll know how to price strategically and set expectations.
👉 If you’re curious about whether your neighborhood is currently in a buyer’s or seller’s market, We can help break it down for your specific area.
