Inventory levels define the state of the housing market. It is either a Buyers’ Market, a Balanced Market or a Sellers’ Market. To determine what market we are in, ask yourself, “how many months of housing inventory do we have?”
The Three Types of Real Estate Markets:
Buyer’s Market: When there is more than seven months of inventory.
Balanced Market: When there is between five to seven months of inventory.
Seller’s Market: When there is less than five months of inventory.
Months supply of inventory loosened in 2014, helping ease price growth back to sustainable levels. We ended 2014 with 5.2 months of supply. This means that if no new listings hit the market, all the homes already listed would sell in 5.2 months.
In the last three years, we have been flirting with a balanced market and are getting closer to that reality. Balanced markets occur during the transition between a Buyers’ Market and a Sellers’ Market. So, if we are in a market marked as a transitional state, what does that mean for our clients and our business?
With mortgage rates and home prices expected to rise in 2015, by waiting, buyers face potential affordability barriers while sellers ultimately risk being faced with fewer buyers as a result. All signs point toward making the move now.
The decision to buy or sell is a very important decision for you and you should never be forced to make a decision that doesn’t sit right with you and your family. As your real estate agent, out greatest value is acting as your local economist of choice and presenting you with the most current market facts and analysis to help you make the most informed decision.
National award-winners and seasoned Realtors with over many years of experience in Northern & Central New Jersey, Rahul & Smitha and their team have become New Jersey’s “Go To” agents and consistent leaders with a reputation for tenaciously protecting their clients’ interests. They specialize in Morris, Somerset, Essex, Union and Passaic Counties.