We have all heard the real estate sayings, “It’s a seller’s market” or “The buyer is in control”, but which one is it? As a buyer or seller in today’s housing market, have you wondered who determines the market?
Hi, I’m Tanja Odzak, eXp Realty, I help people sell and buy homes right here in the East Bay!
Seems like not a day goes by when we don’t read or hear headlines on the housing market. Whether it’s in regard to mortgage rates, housing prices or inventory. In fact, it can be quite confusing to either a buyer or seller on who is in the driver’s seat.
So what data do real estate professionals analyze when looking at the market? It is the supply and demand of inventory. Typically, when supply is low and buyer demand is high, it tends to be a seller’s market. If there is an oversupply of listings that can indicate a buyer’s market. An oversupply of inventory shows demand has cooled, shifting the control to the buyer.
To break it down even further, as real estate professionals, we look at the absorption rate of a specific area. What so-called experts say in regards to the absorption rate is that if there is less than a five month supply of homes available it’s a seller’s market. A five to seven month supply indicates a balanced market and anything more than a seven month supply means it’s a buyers market.
However, I do not agree with this because each area, neighborhood, city and state will vary. For example, right now in my area if a home is on the market longer than 21 days, it’s a sign that the home is probably priced too high. So although the “experts” have given their opinion on what traditionally a “Seller’s market, or Buyer’s market is, it’s really imperative that you consult a seasoned, experienced real estate expert to show you the local data.
Let’s look at what has been happening nationally.
Nationally, we have been in more of a seller’s market with lower inventory levels. According to Realtor.com economic research analyst Hannah Jones, “The market is still leaning toward a seller’s market but has gained balance since Covid when the market was red hot. The last true buyer’s market was in 2012 when housing inventory was a little over seven months, meaning it’s been 12 years since supply outweighed demand.”
And by the way… this market is not a slam dunk for sellers. It is also challenging to be a seller. Most sellers hold a mortgage with a lower interest rate than today’s rate.
This means if they sell they would be purchasing in a higher priced market. So although it is more favorable to be a seller in today’s market, sellers like buyers face higher rates and home prices too.
In fact, experts say the market feels more like a “limbo market” where both buyer and seller feel conflicted about the overall economy. But either way, don’t give up as owning real estate is still the number one way to build your net worth over time.
If you would like more information on the East Bay real estate market, Call me today and let’s talk about it. I’m a seasoned East Bay expert with a 5-Star rating. I’ll help you navigate the market and make it happen, whether that’s selling or buying or both!
And if you or someone you know needs to sell a home, ask me about my home-selling plans.. I took the pain out of negotiating with a Realtor and made it SUPER simple. Really! Choose Silver, Gold, or Platinum- Pick your Plan and Pick your Price. Terms do apply. I’m Tanja and I sell homes. Let’s get you going, Call me today!
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
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