Explanation of Market Inventory Statistics What type of market is it? Is everyone talking about a buyer's or seller's market? The data reflected on a market inventory report determines what type of market we are in. Here is an explanation of the numbers and what they mean.  1 - 3 Months of Inventory Accumulation This is a Seller's Market. Not enough homes are available to meet the demands of the buyers. Bidding wars with multiple offer situations can occur. During this type of market sellers generally will not accept home sale contingencies or delayed closing dates. 4 - 5 Months of Inventory Accumulation This is considered a Balanced Market. There are sufficient numbers of buyers to purchase the supply of inventory that flows into the market and there are enough available homes from which to choose. In a balanced market, bidding wars are rare and price negoiations are likely. 6+ Months of Inventory Accumulation This is a Buyer's Market. Homes that are priced well and in high demand areas will most likely move quickly and homes that are overpriced or in low demand areas will take longer to sell. In  this market condition, sellers are more likely to accept home sale contingencies.  Important Whether you are in a Buyer's Market or Seller's Market may depend on the price range. Even in an overall Buyer's Market, certain high-priced homes may move slowly. Ask your real estate agent  for the Inventory Accumulation Rate that applies to your area or price range. Read about our current local market statistics with inventory accumulation rates.