One way to tell whether you’re in a buyer’s market or a seller’s market is to track the relationship between inventory and sales. In a buyer’s market, the inventory (number of homes on the market) is much larger than the number of sales in a given time period. In a seller’s market, the situation is reversed.
If you want to see what inventory vs. sales have been doing in various counties over the past year, check out this blog, nicknamed BMIT (Bubble Markets Inventory Tracking). On the left side of the homepage, you’ll see a heading entitled BMIT Graphs and Tools. The first link is Inventory Graphs. Check it out. The graphs provide a clear snapshot of our current buyer’s market.
The charts used to include two bars: one for number of sales, one for number of homes on the market. Now, a third bar is starting to appear: number of bank-owned homes. Oh-oh.