Presented by Ronnie Jenkins, Realtor

 

 

How to Know if it’s a Buyer’s Market or a Seller’s Market

 

Real Estate headlines can be confusing—one week it’s a hot seller’s market, the next week it’s shifting to buyers. So how do you really know where things stand? The answer is in the numbers.

 

CHECK THE DATA

 

The most reliable metric is months of inventory:

Active Listings ÷ Pending Sales = Months of Inventory

 

Under 4 months → Seller’s Market

4–6 months → Balanced Market

Over 6 months → Buyer’s Market

 

DIG DEEPER WITH BUYER TRENDS

 

Numbers like days on market (DOM) also matter. They show how quickly buyers are making decisions—and reveal the true strength of the market.

 

EXAMPLE: SOUTH ORANGE COUNTY

 

Right now, South Orange County has about 3 months of inventory, which points to a seller’s market. However, with an average 42 DOM, it’s more of a soft seller’s market. Inventory is low, but buyers are still being selective and taking their time.

 

NEIGHBORHOOD VARIATIONS

 

Keep in mind: the market doesn’t move the same way everywhere. One neighborhood might be seeing bidding wars, while another just a few miles away feels slower. That’s why hyper-local data always tells the real story.

 

EXAMPLE: LADERA RANCH

 

Active: 59

Pending: 21

Inventory: 3 Months

DOM: 15

Strong Seller’s Market

 

EXAMPLE: TALEGA

 

Active: 32

Pending: 5

Inventory: 6 Months

DOM: 55

Soft Balanced Market

 

Whether you’re buying or selling, understanding the true “temperature” of the market is key to making smart decisions.

 

 

Presented by Ronnie Jenkins, Realtor

Orange County | Silicon Valley

www.ronniejenkinsrealestate.com

 

 

 

 

 

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