Who has the leverage in your market?

How do you know whether you’re in a buyer’s market, a seller’s market, or a balanced market? You have to mine the data specific to the subject area to determine that…there is no magic algorithm or quick formula. Sure, you’ll find headlines that try to paint the real estate market with a broad brush, but the reality is that each neighborhood is unique, and therefore non-conforming.
Case in point, my office is in Riverbank, a small town in northern California. When I run the data for the entire city, I come up with 1.5 months of inventory…a definite seller’s market. However, when I run one particular neighborhood inside of Riverbank, I get a completely different picture…11.2 months of inventory. In this particular neighborhood, the buyers have the leverage.
Generally speaking, the leverage is defined as follows:
*1-3 months of inventory (supply)=Seller’s market
*4-6 months of supply=Neutral or balanced market
*7 months or more=Buyer’s market
In as much as we’ve become a “want it now” society, some things still require a bit of digging. Don’t rely on an “online evaluation” to determine your property’s value, and don’t rely on a headline to determine the market conditions. They can vary even within a few blocks.
If you want a custom evaluation of your individual market conditions, message me or call me. I can have that to you within hours, at no cost or obligation.