Real estate agents all around the world refer to “seller’s market” and “buyer’s market, but how do know if the market is in favor of sellers or buyers? We are going to break it down for you!
We will break down Onslow County for you! For visual purposes, we will make seller’s market in GREEN and buyer’s market in YELLOW.
First, determine property inventory (how many homes are on the market)
A seller’s market will have less than 6 months of inventory.
A buyer’s market will have more than 6 months of inventory.
To determine available inventory, take the number of homes currently for sale and divide that by sales in the past 30 days.
Onslow County from December 7 – January 7th:
Number of sales in the past 30 days: 512
Current homes for sale: 392
392/512= .765 months of inventory
This clearly states that Onslow County is a seller’s market.
Second, determine the average days on the market in your area.
A seller’s market will typically have an average DOM of 45 days or less.
A buyer’s market will typically have an average DOM of 45 days or more.
To determine your area’s average days on the market, you will have to speak to a local real estate agent in your area.
Onslow County’s DOM from December 7 – January 7th:
29 days – this indicates Onslow County is, once again, a seller’s market.
Third, look at mortgage interest rates.
This one can be a little tricker to determine, but lower interest rates indicate a buyer’s market.
In North Carolina, the average interest rate for a 30-year fixed loan is around 2.917% and 2.582% for a 15-year fixed loan. This are great rates!
This indicates that overall, North Carolina is a buyer’s market.
The best way to determine what the market is doing is to talk to a local real estate agent. We would love to be that person for you. Contact us today!