Six months of housing supply is considered to be an indicator of a balanced housing market.  That is to say that if we look at the average number of buyers buying per month (I prefer  to look at it over a 12 month period) and then divide that into the number of active listings in that price range....

• If we have about six months of listings for sale, that shows a balance between buyers and sellers in the market.
   
• If we have well more than six months of supply, then buyers have the upper hand, which is called a buyer's market.
   
• If there is less than six months of houses for sale, then sellers have the upper hand, which is called a seller's market.

As shown above, we're in a relatively well balanced state in the "$0 - $200K" price range (we have been for a while now) and we have recently become much more balanced in the $300K - $400K price range due to some recent recovery in that segment of our local market.

Read more about our local housing market in my monthly market report.  Jump to the full online market report, or download the PDF....