Buyer and Seller Markets   

Buyers' Market

A buyers' market refers to a marketplace that favors home buyers because more homes are listed than can be expected to sell in the near future. If, for example, 15 homes are listed in a neighborhood, and 2 were sold in the last 3 months, the neighborhood has a 22-month supply of homes for sale.  A balanced market is 6 months worth of inventory.  In early 2009, some subdivisions have 3 years worth of inventory on the market.

Sellers' Market

The market has become a sellers' market, where buyer demand meets or exceeds the house-for-sale supply, when the inventory of homes for sale is less than 6 months.   It is not a Seller's Market now.