The Market You’re Selling Into – Cold, Hot or Neutral? 2 of 4


Basically, a Buyer’s Market is one in which:

 Demand is lower;

 Inventory is higher;

 Longer list times;

 Fewer offers;

 Price reductions;

 More than six months of inventory is on the market (more about this in a moment);

 Fewer buyers are purchasing

To calculate inventory accurately, use the following formula: Find the total number of active listings in your market last month. Then find the total of closed and sold transactions from last month. Divide the number of total listings by the number of total sales, which results in the number of months of inventory currently available in your market.

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