In the real estate world, what goes up must come down—and what is down won’t stay there forever. The market is constantly shifting between three key phases: a buyers' market, a sellers' market, and a balanced market.

A Buyers’ Market

In a buyers’ market, homes aren’t selling rapidly. The supply of homes exceeds the demand, which puts buyers at an advantage. With more options available, buyers can often secure properties at more affordable prices and have stronger negotiating power.

A Sellers’ Market

A sellers' market is the opposite. Demand outweighs the available supply of homes, meaning there are more buyers than houses on the market. This often leads to multiple offers, giving sellers a clear advantage. Homes sell quickly, and prices tend to rise.

A Balanced Market

A balanced market occurs when there’s an equal share of buyers and sellers, with around six months of housing inventory. This creates a stable environment where neither buyers nor sellers hold a major advantage. However, balanced markets are usually transitional and don't last long.If It Is Erased, Then It Is Replaced

Flexibility doesn’t mean neglecting your time-blocked tasks. Think of your time-blocking schedule as a puzzle—if one piece is removed, it must be replaced.

For instance, if a client emergency forces you to cancel time for property research, make sure you schedule a new block for it later in the week. This keeps your schedule balanced and helps maintain the discipline and consistency required for successful time-blocking.

How Do I Determine What Market We’re In?

The key to understanding the current market is by tracking the months' supply of inventory. This metric measures how long it would take to sell all available homes if no new listings were added.

• Buyers’ Market: A higher months' supply indicates a buyers’ market, where there’s more inventory than demand, giving buyers more choice and leverage in negotiations.

• Sellers’ Market: A lower months' supply points to a sellers’ market, with high demand and fewer homes for sale, leading to quicker sales and rising prices.

Conclusion

• In a buyers' market, there are more homes for sale, slower sales, and lower prices.

• In a sellers' market, homes sell faster, there’s less inventory, and prices are higher.

Understanding these market types and the months' supply of inventory is essential for navigating the real estate landscape effectively.

To learn more, we have another blog that delves deep into the differences between a buyer's and a seller's market.