Buyers market? Sellers market?

How do you know if the market is leaning towards buyer’s or seller’s? The answer lies in the months of inventory available in your market. Compare the “active” houses on the market with the amount that actually closed in the same month or timeframe. That figure provides the market “absorption” rate. The traditional definition of a buyer’s market is one that has an absorption rate of 9 months or more. An absorption rate between 6 and 9 months indicates a balanced or transitioning market. A 6 month or less supply of available inventory would indicate a seller’s market.