So, which is it? A buyer’s market or a seller’s market?
Well, it depends!
First, let’s define each market. According to research, a buyer’s market exists when there is more than 4-6 months of inventory on the market.
If it would take longer than 4-6 months to sell out all of the inventory currently for sale, then it is a buyer’s market.
This calculation is obviously a function of the amount of inventory on the market and the current pace of sales.
A seller’s market exists if it would take shorter than 4-6 months.
So, which is it?
It depends very much on the price range.
Here are the numbers for Northern Colorado:
• $300,000 to $400,000 = 0.9 months
• $400,000 to $500,000 = 1.9 months
• $500,000 to $750,000 = 2.3 months
• $750,000 and over = 5.8 months
So, most price ranges are a clear seller’s market. It’s not until $750,000 and over that the market starts to approach a more balanced state.