The single variable that most clearly measures whether we are in a ‘Sellers’ market or a ‘Buyers’ market is ‘Months Supply’, a measure of how fast homes are selling relative to the number of homes on the market. Generally, if Months Supply is under 5 months, good properties are in short supply, and Buyers have to compete to get what they want. If Months Supply is over 10 months, good properties are plentiful, Buyers can take their time, and Sellers have to compete on price to get their home sold.
As you can see in this March 22nd snapshot chart of Months Supply by Price Range in Seattle, Bellevue and King County, even as slow as things seem, properties in the lower price ranges are selling fairly well – while properties in the higher ranges are still languishing.
It could be a good time for a move-up buyer – your leverage will be better on your purchase in the higher price range. You might get squeezed a little on the sale of your lower-priced home, but be able to squeeze a lot more on the purchase price of your next home 
Chuck Reiling
(originally posted on 3/9/09, updated 4/9/09)
