Today I’d like to talk to you about what a seller’s market is. I know you’ve heard that term a lot, but what does it really mean? What makes a seller’s market?
A seller’s market is defined by how much inventory is in the market versus how many buyers are in the market. In a normal market, we’re going to have at least six months’ worth of inventory. By that I mean, if 1,000 houses are on the market and 1000 houses are sold, that will be an equilibrium or zero inventory. Our present market here in Columbus, Ohio has 1.9 months’ worth of inventory. So, we’ve got 1,900 homes on the market.
Another indicator of a seller’s market is the list-price-to-sale-price ratio. In our market, the ratio is at 98.9%. For example, if a home was listed for $100,000, it would sell at $98,900. So there’s not much wiggle room in the price. In our current market, homes are selling at slightly less than list price.
If you have any questions about this topic or concerning real estate, please give me a call or send me an email, I’d love to speak with you.