You may have heard a lot lately about how low inventory is in the Seattle area. But what metric is used to track inventory levels? It is described a “Months of Inventory”. A very short way to think of it would be if no more houses came on the market, how long would it take to sell everything? Of course there’s a more detailed mathematical way to determine months of inventory, but that sums it up succinctly.
A “balanced market”, or one that’s equally split between buyers and sellers, is when months of inventory is roughly between 3 and 6 months. Over 6 months and it’s considered a buyer’s market, less than 3 months and it’s a seller’s market.
The March inventory in the Seattle area is around a 1 month supply, sometimes less. In West Seattle for instance, it’s about a 3 week supply. This is an extreme seller’s market! That’s great for sellers, but what about buyers? That’s where having a creative real estate agent comes in handy! (I admit, that’s shameless plug!) Give me a holler if you would like more info!