One of the metrics used to measure the health of the real estate market is Months Supply, which equates to the number of homes on the market divided by the average number of homes sold per month.
Click on chart to see larger view
A seller’s market is one that is typically described as on where there are 4 months or less supply of homes on the market. A balanced market is 5-6 month’s supply. And, a buyer’s market is one where there are 7 or more month’s supply of homes on the market.
From the chart above, you can see that the $50,000 and under market really is more of a seller’s market than you might have heard. Similarly, properties in the $50,000-$125,000 price range now appear to be in a more balanced market. As the price range increases, so does the time to sell. In the $3M and over range, the Phoenix areas has an 8 year supply of homes - definitely an extreme buyer’s market!
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