We are again starting the year with a six month supply of homes for sale, a sign of a balanced market

For the second year in a row we are starting out in January with a six month supply of homes for sale, which is traditionally seen as a sign of a balanced housing market.

A few years ago (2009-2011) we were consistently starting the year with enough homes on the market for every buyer that would buy in that year.  That equates to 12 months of housing supply, and those were years of having a significantly oversupplied market -- which caused sales prices to decline and gave buyers the upper hand in negotiations.

In 2015, we should expect that buyers and sellers will have relatively equal amounts of negotiating power, depending on the other factors affecting the sale.

Important Notes:

1.  The 2015 sales (1083) is an estimate of the number of sales we will see this year.  Read more here.

2.  The number of months of housing supply available varies by price range.  See my full market report for further details.