WHAT IS A BUYERS MARKET? Real Estate FAQ with Jason Fox

what is a buyers market


In this video Jason Fox gives his answer to the question… “What is a Buyers Market?”

A “Buyers Market” is when there is more than 3 months of housing inventory.

That is based off of the Law of Supply and Demand.

Generally, low supply and high demand increase price and vice versa.

For supply we use a term called Inventory, or how many houses are for sale.

Demand is impossible to pinpoint but we use some key indicators such as population size and growth,  job growth rate, access to capitol, interest rates and how quickly homes sell.

When we talk about inventory it is in terms of how many months of inventory we have to sell.

That is the number of active listings divided by sales and pending sales.

A neutral market once was considered 5-6 months of inventory.  Recently the economists have shifted it to 3-4 months of inventory.

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Hey everybody it's Jason Fox with The
Madrona Group and today I'm answering
some frequently asked questions about
real estate. What is a buyers market?
A buyers market is when you have more
than three months of inventory. Inventory
is measured by that number of listings
divided by the sales and pending sales.
Currently, in January 2020 we have
about one month's supply of inventory so
that is a seller's market. We need to be
higher than three months for it to be a
buyers market that's based off of supply
and demand. Obviously if we have less supply
then we have more demand.

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About the Author

Jason Fox

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"The best way to find yourself is to lose yourself in the service of others." ~ Gandhi [ Recognized as a top 3.5% agent in the United States. ] [ Jason Fox was born in Everett, WA currently lives in the Meadowdale neighborhood in Lynnwood and has lived in different parts of the Puget Sound area in between. He has been in the real estate industry for 20 years in many different capacities. From General Manager of a real estate CRM engagement business, Founder of 2 real estate marketing agencies, nationally recognized blogger with the Jason Fox Real Estate Marketing Blog, Marketing Manager for a top title and escrow service. ] [ Jason is now an award winning residential real estate sales agent, Co-Founder of The Madrona Group, Co-Owner of John L. Scott Ballard and John L. Scott Westwood. ] [ Active in the community, Jason is a proud part of the Autism Speaks effort to raise awareness for autism. This project is very dear to him as he has an 8 year old son, Hudson, diagnosed ASD. Jason is also involved with Neighbor's in Need, the Forgotten Children's Fund, WELD Seattle and the Union Gospel Mission assisting the homeless population in the greater Seattle area. ] [ "My passion is being able to give back to the community that has given so much to me." ] [ When he is not assisting his friends and family with the services of home ownership he loves being a dad to his 4 children, Carter, Rowen, Tyler and Hudson and being a husband to his amazing wife Sarah. Hiking, working around the house, cheering for the Seahawk's, Mariners and Huskies and golfing. ]

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