Buyer's Market? Seller's Market?

Happy Tuesday Morning to YOU!  

We hear a lot about the market in the media - and in basic cocktail conversations, but what does it mean?  Is is a buyer's market?  A seller's market?  Nobody's market???  How do we evaluate this? 
Actually, it's pretty easy.  Here's a quick paragraph that you can use to dazzle your friends and neighbors at the next party:

One Key Metric for Local Real Estate Market Health
How do you know if your market’s recovering or not?
Regardless of what your buyers and sellers hear in the national media, we all know that real estate markets are localized economic systems with complex factors influencing pricing, inventory, and trends.
So how do you know if your market has hit bottom, is still sliding down, or is showing signs of recovery? What key indicator should most influence your opinion?
According to the talented real estate mind of Bernice Ross, there’s one simple, precise indicator: How many months of inventory are on the market? Here’s Ross’ opinion on market health:
More than 8 months inventory = “rocky buyer’s market”
Between 7 – 8 months inventory = “market is more balanced -bottom may be behind you”
Less than 6 months inventory = “good news, early signs of recovery”
To determine “months of inventory” use this equation:
Months of inventory = (total # of active listings)/(average # of monthly sales over the prior 12 months)

In Summit County currently, we are in a recovering market with regard to inventory.  Some segments are still really high and some are super low, but overall, the months of inventory in Summit County is about 7.  Balanced.

If you would like the specifics on a particular segment, just let me know.  I'm happy to give you the stats!   

And Here's Your Morning Coffee!