Every area is different in regards to the market. It is either a Buyer’s market, a Seller’s Market, or it is neutral.
Buyer’s Market – More than six months of inventory
Neutral Market – Between three and six months of inventory.
Seller’s Market – Zero to three months of inventory
* Inventory is determined by absorption rate = how many houses are selling in an one month period.
Currently in Westside, California we are in a Seller’s Market.
During a Seller’s market it does not mean it is a bad time to buy, it means that homes are being purchased at a fast rate. This causes inventory to appear very low. When inventory is low and the demand is high, there will most likely be multiple offers on each property. So why not wait until the market slows down? This may look like a good idea, But when you are financing and interest rates are low, you would not want to wait until they rise would you?
The best thing to do during a Seller’s market is to stay calm and determined, work with an agent to show you new listings as soon as they appear on the market, and write a strong offer that will win during multiple offer situations.
Love your Home, Love your Life.