Definition of Seller's Market:
Orange County Seller's Market:
An Orange County seller's market is defined as one in which there are more buyers than homes for sale. Since supply is lower than demand the homes will tend to have a higher market value and obviously a much more attractive market for sellers. The opposite of this would be an Orange County buyer's market; this is one in which there relatively large inventory of homes for sale and many buyers which helps drive-down market values.
A market's absorption rate is the best way to figure out whether a certain city or community in Orange County is acting like a seller or buyer's market. The absorption rate is determined by finding out how many homes sold in a certain month – in a specific community - and dividing it by the total number of homes for sale at the end of the month – in that same community. Absorption rates of 20% or above is usually considered to be a seller's market since homes are selling relatively quickly and the number of months of supply is low.