Check your local months of supply of inventory: under 3 months typically signals a seller's market, over 6 months signals a buyer's market, with the range in between considered balanced. Pair that with average days on market and the list-to-sale price ratio for a fuller picture beyond a single number.
Months of supply, the core number
Months of supply measures how long it would take to sell every home currently listed at the current pace of sales, calculated by dividing active listings by the average monthly sales rate. Below 3 months, buyers are competing for limited inventory, which favors sellers on price and terms. Above 6 months, sellers are competing for a limited pool of buyers, which favors buyers on price, contingencies, and repair requests.
Days on market
A shrinking average days-on-market number signals rising buyer demand relative to supply, a classic seller's market indicator. A rising number signals the opposite, homes are sitting longer, which typically means buyers have more room to negotiate on price and terms.
List-to-sale price ratio
This compares the final sale price to the original list price across recent closed sales in your area. A ratio at or above 100 percent, homes selling at or above asking, points to a seller's market. A ratio meaningfully below 100 percent points to a buyer's market, where list prices are more of a starting point than a floor.
Why national headlines do not answer this question
National market data can show a buyer's market overall while your specific zip code, price range, or property type is running the opposite direction, and vice versa. Local supply and demand vary block to block in some cities, especially between different price tiers and property types, a condo market can behave completely differently than the single-family market in the same town.
How to actually get your local numbers
Ask your agent to pull current months of supply, days on market, and list-to-sale ratio specifically for your neighborhood and price range, not the metro area average. This is a five-minute pull from MLS data and gives you a far more accurate read than any national report.
What to do differently depending on which market you are in
In a seller's market, you can typically price at or slightly above recent comparable sales, expect a shorter negotiation window, and hold firmer on repair requests after inspection. In a buyer's market, competitive pricing from day one, flexibility on closing timeline, and a willingness to offer a credit or concession for repairs will generally shorten your time on market more than holding out for your original number.
A quick example of how these numbers interact
Say your area shows 2.5 months of supply, a median days-on-market of 18, and a list-to-sale ratio of 101 percent, all three point toward a seller's market where competitive offers and limited concessions are the norm. Now say a neighboring price tier, homes above $750,000 for example, shows 7 months of supply, 60 days on market, and a 96 percent ratio, a meaningfully different, buyer-favoring market within the very same city. This is exactly why pulling numbers specific to your price range matters more than a single citywide average.
The Homexa position
A Homexa® agent can pull live local market data centered on your actual property, not a citywide average, so your pricing and negotiation strategy reflects the market you are actually selling into.
Bottom line
Months of supply, days on market, and list-to-sale ratio, pulled for your specific area and price range, together tell you far more than a single national headline about mortgage rates or home prices. Ask for these three numbers before you decide on price or negotiation strategy.