In a seller’s market there are more buyers than homes: homes sell fast, often over asking, and sellers can say no to contingencies. In a buyer’s market there are more homes than buyers: you can negotiate on price, repairs and closing costs. The most common measure is months of supply: under four months usually favors sellers, four to six is balanced, and over six favors buyers.
How to tell which one you’re in
National headlines rarely describe your market. Conditions can differ sharply between neighboring ZIP codes, and even between price ranges in the same town. Look at these local numbers:
| Measure | Seller’s market | Buyer’s market |
|---|---|---|
| Months of supply | Under 4 | Over 6 |
| Share of homes sold over asking | Often 40% or more | Low, under 15% |
| Days on market | Days to two weeks | Over two months |
| Sale price vs. list price | At or above 100% | Below about 97% |
| Price cuts | Rare | Common |
Months of supply is how long it would take to sell every home for sale at the current pace, if no new listings came on. Less supply means more competition for each home.
Try it: Market checker by ZIPSee months of supply, the share of homes selling over asking and days on market for any ZIP code, updated monthly.One score for competition
Our competition score combines those measures into a single number from 0 to 100 for each ZIP code, compared with the rest of the country. See where it’s highest on the hottest ZIP codes ranking.
Strategy in a seller’s market
- Be ready before you see the home: pre-approval in hand, funds documented, decisions made in advance.
- Expect to pay at or over asking for the best homes. The over-asking calculator shows what’s typical where you’re looking.
- Strengthen terms, not just price: a flexible closing date, a larger earnest money deposit, or an appraisal gap commitment can win over a higher offer. Check your offer with the offer strength score.
- Know your walk-away number before the bidding starts.
Strategy in a buyer’s market
- Negotiate price: homes that have sat for weeks often accept less. The negotiation room tool estimates how much.
- Ask for help with costs: sellers may pay part of your closing costs or a rate buydown. See seller concessions and 2-1 buydowns.
- Keep your contingencies: inspection and financing contingencies protect you, and sellers are more willing to accept them.
Balanced markets
Between four and six months of supply, neither side has the upper hand. Well-priced homes still sell quickly, but overpriced ones sit. Pricing matters more than speed: compare the list price with recent sales before you offer.
How much leverage do you have?
The buyer leverage meter reads the local numbers and tells you how much room you’re likely to have, and the days on market predictor estimates how long a home is likely to sit, which tells you how motivated the seller may be.
Common questions
How many months of supply is a seller’s market?
Under about four months of supply usually favors sellers, four to six is balanced, and more than six favors buyers.
Can one town be a buyer’s market while the next is a seller’s market?
Yes. Conditions vary by ZIP code and price range, so check local numbers rather than national headlines.
Should I waive contingencies in a seller’s market?
Be careful. Waiving inspection or financing contingencies can make an offer stronger but puts your deposit and finances at risk. Shorter contingency periods are often a safer way to compete.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.