The summary below breaks down the different segments of inventory to demonstrate how the expanding or decreasing supply of homes for sale affects the reaction of the market.

• 0 – 3 Months of Inventory – Extreme Seller’s Market
• High Buyer Competition
• Extreme Seller demands
• 3 – 5 Months of Inventory – Seller’s Market
• Buyer Competition
• Sellers make less concessions
• 5 – 7 Months of Inventory – Balanced Market
• More choices for Buyers
• Buyers and Sellers work together to find an agreement
• 7 – 10 Months of Inventory – Buyer’s Market
• Lots of Homes for Sale
• Buyers have the ability to make demands
• 10+ Months of Inventory – Extreme Buyers Market
• High Seller Competition
• Extreme Buyer demands