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Hole 09 · Front Nine — Get Ready

Market Fundamentals

Inventory, days on market, and price trends tell you whether you are walking into a buyer's market or a competitive one. This hole covers how to read basic market data for your area so your offer strategy matches reality instead of guesswork.

6 min read · Free, no signup

Written by Isaac Ortiz · Real Estate Broker · Compass | NWMLS #146754

Three numbers describe any local market

Median sale price tells you the midpoint of what's actually closing, not list prices. Days on market tells you how fast homes are moving — fast means competition, slow means room to negotiate. Inventory, often measured as months of supply, tells you whether buyers or sellers currently have the upper hand. Together, these three replace guesswork with a real read.

  • Median sale price: what's actually closing, not what's listed.
  • Days on market: pace — how long a typical home takes to go under contract.
  • Inventory / months of supply: how many options exist relative to demand.

Buyer's market, seller's market, or somewhere in between

A seller's market means low inventory and fast sales — expect competition and less room to negotiate. A buyer's market means rising inventory and homes sitting longer — expect more leverage on price and terms. Most real markets sit in between, so the headline label matters less than the specific slice you're shopping in.

  • Seller's market: low inventory, fast sales, less negotiating room.
  • Buyer's market: rising inventory, homes sitting longer, more leverage.
  • Most markets are a mix — read your specific slice, not just the headline.

A national headline tells you almost nothing about your street

National and even citywide market data can mask what's happening in your target neighborhood and price band — one pocket can be in a bidding war while a mile away homes sit for weeks. Check data at the neighborhood and price-tier level before you set expectations, and treat any single national statistic as context, not a decision-making input.

  • Citywide and national numbers average away the differences that actually affect your offer.
  • Two neighborhoods a mile apart can behave like two different markets.
  • Use national data for context; use neighborhood-level data to decide.

Let market conditions set your offer strategy, not the other way around

A fast, low-inventory market usually calls for a tighter contingency structure and quicker decisions. A slower market usually gives you room to negotiate price, request repairs, or take more time. Check the current read for your target area before you tour, and revisit it if you're searching for more than a few months — conditions shift by season.

  • Fast market: tighter contingencies, faster decisions.
  • Slower market: more room to negotiate price and terms.
  • Re-check the read periodically — PNW markets shift with the seasons.

Mastery check

Prove it out before you move on.

Caddie

Before you play through — quick read of the green:

3 quick questions. Get all but one right and this hole is marked played. Unlimited retries — there's no penalty for missing one.

Question 1 of 3

What does a short "days on market" number generally signal?

Question 2 of 3

Why can't you rely on a national or citywide headline number alone?

Question 3 of 3

In a fast, low-inventory market, what should your offer strategy usually account for?

Still stuck? Ask the Caddie.

Hole 8: Agents & RepresentationHole 10: Search Strategy