One of the best ways to view a local market is to look at a stat called ‘Months Supply of Inventory’. This tells us how long, at the current rate of sales, would it take to clear all the inventory off the market.
A stable real estate market is defined as 5 to 6 months supply of inventory. If it’s less than 5 months it is a ‘seller’s market’ and if it’s more than 6 months, it’s a ‘buyer’s market.
Last year I looked at this and discovered that Oklahoma City was in a deep buyers market except in the very low price ranges. This year is much different. Up to $200,000 we are in a sellers market. Above that is a buyers market and over $800,000 it is an extreme buyers market. If you have a home to sell priced from $1,500,000 to $2,000,000, it may take nearly 4 years to sell your home.
To add some perspective to this picture, I don’t believe that these better numbers are indicative of increased sales activity, rather we are seeing the result of a drastically reduced inventory. Inventory is down about 20% from the same time last year.
Sellers – if your home is under $200,000, this is a great time to jump into the market, especially if you’re moving up! You can sell your home into a sellers market and buy into a buyers market. Doesn’t get much better than that!