You hear "buyer's market" or "seller's market" thrown around, but the real question is what those labels mean for your negotiating position and whether waiting makes sense. Three metrics tell the story quickly, and understanding them keeps you from chasing a bottom that may never arrive.
Months of supply: the core gauge
Months of inventory measures how long it would take to sell every listed home at the current pace of sales, assuming no new listings. Below three months signals a seller's market—competition is tight, multiple offers common, and concessions rare. Four to six months is roughly balanced. Above six favors buyers: more choice, longer negotiation windows, and sellers willing to cover closing costs or repairs. Check your county's association-of-REALTORS® report or the local MLS summary; most publish this monthly. A subdivision with eight months of supply today gives you leverage a neighborhood with two months does not.
Days on market and price-cut share
Average days on market shows how quickly homes move. In a hot market, listings go pending in under two weeks; in a buyer's market, thirty or forty days is common and anything sitting sixty-plus is negotiable. Pair that with the share of active listings that have taken a price cut. If twenty or thirty percent of homes have dropped their ask, sellers are adjusting expectations and you have room to negotiate. If cuts are rare, expect to pay near list or above. Both numbers are in your agent's MLS dashboard and in most public portals' market snapshots.
How leverage shifts
In a seller's market, you write clean offers—minimal contingencies, larger earnest deposits, maybe an appraisal-gap clause—and you still compete. In a buyer's market, you ask for closing-cost credits, request repairs after inspection, and take your time on due diligence. The shift is not subtle. A balanced market means standard terms and reasonable back-and-forth; extremes in either direction change the script entirely.
The Alliance take: buy right, not perfectly
Waiting for the absolute bottom is a gamble. Inventory can tighten fast if rates drop or builders pull back; a "better" market six months out may evaporate in three weeks of listings going pending. If a property fits your budget, passes inspection, and the monthly cost works long-term, that beats timing by a quarter-point. Run the numbers with current rates—if a conventional loan at 6.75 percent keeps payment comfortable and you plan to stay five years or more, the market label matters less than the asset itself. These figures are illustrative; rates and products are subject to change and this is not a commitment to lend.
Read the data, understand your leverage, and act when the fundamentals align. Perfect timing is rare; sound execution is not. Start an application when you find the right property, regardless of headlines.