Whats The Best Way To Know Its A Sellers Market Or Buyers?

[Maurice E. Stokes Jr]

What are some good ways to analyze whether my area is a good market or a bad one. How do you determine what areas are worth investing?

[Chris Soignier]

Originally posted by @Ralph Justiz:

@Maurice E. Stokes Jr ask a real estate agent! They should be able to show you some stats pretty quickly if they have access to the local mls. Attached below is a screen shot I pulled from my mls in OKC. The 2.4 supply number represents how many months of supply are currently avaliable on the entire MLS. What I've been taught is 6 is equilibrium, higher then 6 is a buyers market, and less then 6 is a sellers market.

We also have the ability to shrink the scope of data to specific cities as long as they are apart of our MLS. Hopefully that helps!

 Ralph, you beat me to it.  6 months' inventory is normally considered the equilibrium.  Less than that = sellers' market, more = buyers' market.   I think it's also helpful to look at data trends for sale price as a % of listing price, median price/sq. ft., days on market, closed sales, etc. to gain additional perspective regarding market direction.