Coldwell Banker Relocation Team

I've talked about the metric "months of inventory". (See below). Months of inventory is the number of months it would take to sell everything on the market at the current rate of sale if no other homes came onto the market.

In theory, when there is 6 or more months of inventory, the market is a buyer's market--because there are so many homes for sale compared to the number of homes selling, buyers have a big selection from which to choose. And as the law of supply and demand goes, buyers are controlling the market; they tend to set the price.

In contrast, when there is less than 6 months of inventory, the market is considered to be a seller's market--because there are not enough homes to meet the demands of buyers.

Notice the graph above. We ae hovering around 6 months of inventory. This can be described as a neutral market--neither a buyer's market nor a seller's market. In this market, prices are expected to remain stable, and in fact they are.

The current market certainly is much stronger than it was just 10 months ago when there were12 months of inventory--a definite buyer's market which tended to drive prices down.

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Useful Information About Bellingham Real Estate
by Tom DeRose