Monday, December 15, 2008

Is it a Seller's or Buyer's Market? (Don't be Fooled)

First, let's define each. An equalibrium market in real estate is when there is 6 months worth of homes on the market. That means if no additional homes were put on the market, it would take 6 months to sell the existing inventory. When there is more than 6 months worth of inventory it is considered a Buyer's market because there is more to choose from. When there's less than 6 months of inventory it's considered a seller's market because with fewer choices, sellers can command premium prices. So where are we today in Santa Clara County? It varies by area, but as a whole we only have 6.5 months of inventory on the market (present inventory is 5,267 homes with an average of 878 homes per month selling). In Santa Clara County, we're not used to anything but a seller's market so it may not feel like an equilibrium, but this is what it looks like.

1 comment:

  1. You are correct..!!

    "San Diego, they are experiencing multiple offers on lower priced homes and home buyers are having difficulty getting their offers accepted"
    - I too was there & now moved to panama due to that reason.... but panama really rocks...

    panama real estate Investor