Industry folklore infers that buyers are in control of the market when house hunters can pick from listing inventory that equals six months or more of sales. If supply is three months or less, the homebuying logic says it’s a “seller’s market.” In between, a so-called “balanced” market is in play.
You have to go back to February 2012, when supply was 7.5 months, to find the last time California buyers were in control of the market, by this definition. And there’s no need to rush. Since 1990, listed houses have sat for an average 63 days in a buyer’s market vs. 23 for sellers. California averaged a 26% lower sales rate in buyer’s markets vs. seller’s markets. Even builders pull back, filing 27% fewer permits to construct single-family homes in buyer’s markets.
Also, ponder this national yardstick of house-hunter interest from the Conference Board: 3% of consumers polled had homebuying plans during California buyer’s markets vs. 5% in seller’s markets.The spreadsheet says California was in buyer’s market status one-third of the time since 1990.