Determining a Buyer’s, Seller’s, or Balanced Market Condition

• When determining whether the market is in favor of buyers or sellers, the absorption rate and current inventory are reliable indicators.
  
• In general, fewer than three months of inventory and more than six months of inventory imply a seller's market and a buyer's market, respectively.
  
• A balanced market has an inventory level of three to six months.
  
• Because there are few options for buyers in a seller's market, you have the luxury of setting your price a little higher.
  
• In a market when there are many options for buyers, it makes sense to price competitively.