You've heard the terms 'buyer's market' and 'seller's market' — but what do they actually mean for your strategy? Here's how to identify which market you're in and how to adjust your approach accordingly.
Understanding whether you're in a buyer's market or a seller's market is one of the most important things you can know before making a move in real estate. It affects everything — from how you price a home to how aggressively you negotiate.
A seller's market occurs when demand exceeds supply. There are more buyers looking for homes than there are homes available. This gives sellers the upper hand.
Signs you're in a seller's market: - Homes sell quickly (under 30 days on average) - Multiple offers are common - Homes sell at or above asking price - Low inventory (fewer than 3 months of supply) - Buyers waive contingencies to compete - Bidding wars drive prices up
Right now in Monterey Park and most of the SGV, we're in a seller's market. Inventory is low, demand is high, and well-priced homes routinely receive 3-10+ offers within the first week.
A buyer's market occurs when supply exceeds demand. There are more homes available than active buyers, giving buyers more negotiating power.
Signs you're in a buyer's market: - Homes sit on the market longer (60+ days) - Price reductions are common - Sellers offer concessions (closing cost credits, repairs, rate buydowns) - High inventory (6+ months of supply) - Buyers can take their time and negotiate - Offers below asking price are accepted
The key metric is months of supply — how long it would take to sell all current listings at the current pace of sales: - Under 4 months = seller's market - 4-6 months = balanced market - Over 6 months = buyer's market
Other indicators: days on market (DOM), list-to-sale price ratio, and the number of active listings compared to recent months. I track all of these for my clients and can tell you exactly where your target neighborhood stands.
1. Get pre-approved and have your financing locked before you start looking 2. Make strong, clean offers — close to or above asking 3. Be flexible on closing timeline and terms 4. Write a personal letter to the seller (it sometimes helps) 5. Limit contingencies only where you're comfortable with the risk 6. Respond quickly — hesitation loses houses 7. Work with an agent who has relationships with listing agents
1. Price strategically — slightly below market can trigger a bidding war 2. Set an offer deadline to create urgency 3. Invest in staging and professional photography (even in a hot market, presentation matters) 4. Consider all terms, not just price — cash offers, quick closes, and rent-backs have value
1. Take your time — there's no rush 2. Negotiate hard on price and ask for concessions (closing costs, repairs, rate buydowns) 3. Keep all contingencies in place to protect yourself 4. Look for motivated sellers (relocations, divorces, estate sales) 5. Consider homes that have been sitting — the longer it sits, the more negotiable the seller
1. Price competitively from day one — overpricing in a buyer's market is fatal 2. Invest heavily in presentation (staging, repairs, curb appeal) 3. Offer buyer incentives (closing cost credits, home warranty, rate buydown) 4. Be patient — it may take longer, but the right buyer will come 5. Consider timing — sometimes waiting for market conditions to shift is smarter than selling at a discount
Monterey Park, Alhambra, and Hacienda Heights remain firmly in seller's market territory. Limited land, strong schools, cultural appeal, and proximity to downtown LA keep demand high. However, we're seeing a slightly more balanced dynamic than 2021-2022 — buyers have a bit more breathing room, and overpriced homes do get punished.
Whether you're buying or selling, understanding the current market conditions — and adjusting your strategy accordingly — is the difference between a great outcome and a frustrating one. That's exactly what I help my clients do every day.
Contact me for a current market analysis of your specific neighborhood. I'll tell you exactly what type of market you're dealing with and how to position yourself for success.