Whether you’re buying or selling, you probably have the same question: Can you get the best deal possible? Buyers want a great price, while sellers want to know they’ll still get top dollar.
The interesting part is, both can actually be true at the same time. It all comes down to where you live.
That’s because today’s housing market isn’t moving in just one direction. Some areas favor buyers, others still favor sellers, and many markets are somewhere in between.
Knowing which type of market you’re in can make a big difference in how you approach buying or selling and what you should realistically expect. Let’s break it down.
One Number Tells You Who's Got Leverage
So how do you know which market you’re in? One number can tell you more than anything else: the months of housing supply. It’s one of the clearest signs of who has the advantage and what strategy you should use. Think of it this way.
Imagine no new homes were listed starting today. Months of supply shows how long it would take to sell all the homes currently on the market based on today’s buyer demand.
Generally speaking, here’s what months of supply can tell you:
Less than 4 months: Sellers usually have the upper hand.
4 to 6 months: Buyers and sellers are on more even ground.
More than 6 months: Buyers typically have more room to negotiate.
Right now, data from the National Association of Realtors (NAR) shows months of supply at 4.6, putting the overall housing market in more balanced territory. Take a look at the graph below:
That means the market as a whole is now much more balanced after years of favoring sellers. Even though the shift may seem small, it can make a big difference in the strategy you’ll need when buying or selling, especially in many local markets.
The Tale of Two Markets: Why 'Balanced' Doesn't Mean the Same Thing Everywhere
Redfin data gives us a clearer picture of how this is playing out across the country. It shows which cities are leaning toward buyers and which are still favoring sellers. Take a look at the graph below:
Some markets give buyers more leverage. Those are shown in blue.
Some still favor sellers. Those are shown in orange.
Others are somewhere in between. Those are shown in gray.
Notice anything? More markets are becoming buyer friendly right now. In fact, this is the most buyer friendly market we’ve seen in nearly six years.
But that doesn’t mean buyers have the upper hand everywhere. Some cities still favor sellers, and if you’re in one of those markets, your buying or selling strategy can look very different from a buyer friendly market.
The Biggest Mistake You Can Make Right Now
Today’s housing market is very local. In one area, a buyer might be able to negotiate thousands of dollars in seller concessions, while in another, a homeowner may need to consider lowering their price.
But in another market, a buyer may need to come in with their strongest offer to avoid losing the home to someone else. At the same time, sellers could still be seeing strong demand and prices continuing to rise.
Same overall housing market.
Very different experiences depending on where you live.
The truth is, what’s happening in your local market can affect everything from pricing your home to making an offer and negotiating repairs or concessions. That’s why having an agent with strong local knowledge matters more than ever.
Your strategy should be based on what’s happening in your local market, and a knowledgeable agent can help you get that strategy right.
Bottom Line
This market isn’t the same for everyone.
If you’re wondering who has the upper hand in our local market, let’s talk. I can show you what the numbers look like and help you figure out the best strategy to reach your goals.
