What is a “Balanced” Real Estate Market
by Dave Williams
In the real estate business, we toss around a lot of terms and unless you’ve spent substantial time preparing for your real estate transaction some of them are bound to go over your head.
Fear Not, for our new series of Real Estate Terms will help you sort them out.
Today we tackle the “balanced market“, which is considered to be an overall real estate market that does not favour the buyer or seller dramatically.
Statistically speaking there are 2 ways to describe a balanced market,
- it is a market where home are taking an average of 90 – 180 days (3 to 6 months) to sell
- or a market where 40% to 60% of new listings in any given month sell.
Both definitions boil down to how quickly is the inventory (all the homes for sale) getting sold.
One important note is an overall balanced market is really composed of several various markets, like this image of some teeter totters. Some areas or neighbourhoods may be experiencing down markets while others are up (HOT!) but over all the market (or teeter totters) average out to a balanced line. If you’re curious how your local real estate market compares to the Ottawa real estate market, feel free to request a personal evaluation.