![Supply: If 6 houses close in 1 month, and there are 12 houses available, then there is a 2 month supply.
Balanced Market: A 4-6 month supply gives Buyers and Sellers incentive to work together.
Buyer's Market: With more than a 6 month supply of homes on the market, Buyers have more choices and thus more negotiating power. Prices tend to decrease.
Seller's Market: With less than a 4 month supply of available properties, there are more Buyers searching than available homes. Sellers have more negotiating power and prices tend to increase.](https://cdn.shortpixel.ai/stsp/to_webp,q_lossy,ret_img/http://buildyournest.com/wp-content/uploads/2023/09/Housing-Market-Definitions-1-pdf.jpg)
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