How is the Market Doing?

How is the market? If I've heard it once, I've heard it 10 times a day. Everyone wants to know, "How is the market doing?" Well, here's the quick and long of how you can tell how it's going.

Yes, interest rates are up, and yes, buyer demands are down, but inventory is still low, so we still have a very strong buyer's market. The very definition of whether we're in a buyer's market or a seller's market is determined by these two things:

Number one, do we have a low inventory? Yes. Do we have buyer demand? Yes. Do we have six months' worth of houses? Well, the truth is, no, we have only three months' worth of houses. If no one listed their house and every house was bought, the assumption rate would only be three months' worth. In some areas, it's even less than that, so that truly would put us in a seller's market.

Now, once we get over that six-month mark, that is what puts us into a buyer's market. So there you go - a seller's market is under six months of absorption rate, and a buyer's market is over six months of absorption rate. I know this may be a lot for some of you, so if you have any questions, don't hesitate to reach out. Edna Wilson, your Hometown Realtor, as Hometown as Apple Pie.