Is it a Buyers Market or a Sellers Market? What is the difference?

Stephen Olyniuk with RE/MAX Performance Realty here in Winnipeg, Manitoba, Canada. One of the questions I get asked a lot as a real estate professional is, “Is it a buyer’s market? Or is it a seller's market?” Well, what does that mean? Let's take a look at the numbers and we can show you.

 

So, basically, if you have 1 to 4 MOI (now, MOI is months of inventory), you're in a seller's market. If you have 5 to 6 MOI, you're in a balanced market. And if you have 7 plus months of inventory, then you are in a buyer's market.

 

Now, how do you figure out what the months of inventory are? Let's take a look. Calculating months of inventory is basically you divide the total number of active listings at the end of the month by the number of sales that were in that same month.

 

So, let's say that you had 90 listings that were active and 33 sales, you would divide 90 into 33, and that would give you 2.73 months of inventory. So now, if you take a look back, 2.73 months of inventory puts you between the 1 and 4 months of inventory, means you're in a pretty strong seller's market.

 

So that's how you figure out months of inventory and whether it's a seller's market, a balanced market, or a buyer’s market. If you have any real estate questions at all, please don't hesitate to reach out and talk to us. And if you're looking to turn your realty into reality, contact Team Olyniuk today. Thanks for watching and have a great day.