How to determine if it’s a buyers or sellers market in the Kissimmee & Orlando area
we’ve often talked about the price of anything is
determined by supply and demand. How much supply of that item there is and how many people want to buy
that item. If it’s very rare and a lot of people want to buy it, prices go up. If there is plenty of that item and not a
lot of buyers, prices go down. That’s not just with housing, that’s with anything that we’re selling.
So now the rule, the guideline – let’s call it a guideline, not a rule – is that if there’s one to five months inventory
in your market, that means there’s not enough inventory to quench the thirst of the number of buyers in the
market. So to sell those at an advantage and there will be appreciation.
If we have five to six months, that’s a normalized market. If there’s five to six months inventory, that means
prices are going to remain relatively stable.
If you have more than six months – very few market places have this right now – but if you have more than six
month’s inventory in your market, then we know that there are not enough buyers out there to quench the thirst of the sellers who want to sell.
Just FYI here in the Kissimmee & Orlando area we are closer to 3 months of inventory.