In the ever-evolving real estate landscape, understanding whether you’re operating in a buyer’s or seller’s market can significantly impact your strategy and outcomes — whether you’re investing, relocating, or advising clients. Recognizing these market conditions helps you make confident, data-driven decisions and align your timing and tactics accordingly.
A buyer’s market occurs when housing inventory exceeds demand. With more homes than buyers, the market favors purchasers, who benefit from a wider selection, reduced competition, and often lower prices or seller incentives. This environment allows more time for due diligence, negotiation, and making informed choices.
Conversely, a seller’s market arises when demand outpaces available housing. With limited inventory and high buyer interest, homes tend to sell quickly — often above the asking price — and multiple offers are common. While sellers may have the upper hand, competitive pricing and proper home preparation remain critical to attract premium offers and ensure smooth closings.
We have been in a seller’s market since COVID and continue to see demand outpace available homes for sale. That said, the cliche is true that all real estate is local. In Berkshire County there are three distinct housing markets, we identify them based on the registry regions for ease of data consistency — North, Middle and South.
Within those markets, homes within neighborhoods and in differing price point ranges can also favor one party over another. When inventory is higher than demand, we see the market shift and sometimes balance and then go to a state where one side has an advantage.
In Berkshire County, we monitor key indicators of market conditions including the pace of home sales, the ratio of list-to-sale price, and inventory levels. In hot markets, homes may go under contract within days. In slower markets, listings linger, and negotiations are more involved.
As a benchmark, when the market has between seven and eight months of inventory absorption, it is balanced and starts to tip to a buyer’s market with even more inventory. Sales of residential homes in Berkshire County in 2024 had approximately a 3 percent overall absorption rate, with north at 3 months, middle at 2 months and southern Berkshire at 6 months of inventory to maintain the sales pace.
It’s important to note that real estate markets are fluid and can change rapidly due to factors such as interest rate fluctuations, job market shifts, or economic outlooks. Spring is an especially busy time for home sales in our region because environmental factors play an important role — inspections are easier when you can see the exterior clearly, ground is softer to allow for septic management, and overall when people think of moving, warmer weather is appealing.
While market conditions matter, they shouldn’t be the sole determinant of making real estate decisions. Personal factors — such as financial stability, business growth, or family needs — often carry more weight. Working with a trusted real estate professional can help you navigate current conditions, make sense of the data, and align your choices with both market realities and long-term objectives.
Understanding market dynamics doesn’t just make you a smarter buyer or seller — it makes you a savvier in the home buying and selling process. A qualified Realtor can interpret these trends locally, offering insight into how they influence your goals, whether you’re buying or selling.