know the area well, which can be advantageous in many ways, as well. Once you’ve decided on a market area, it’s time to look at inventory levels . This means finding out how many homes are for sale. Keep in mind that low levels (e.g., few houses for sale) can be a good thing, because it means it’s a seller’s market. Ideally, you want your market to have less than four months of inventory. The following are the different types of markets that exist: • Hypermarket: Less than one month of inventory; no competition regarding inventory but major competition from buyers for all properties that are priced right. Listings tend to sell above asking price after receiving multiple offers. • Seller’s Market: Less than four months of inventory; low inventory competition. You will likely sell for a good price, often above asking with much competitive interest. • Stable Market: Four to six months of inventory. Properties might take longer to sell, and could sell at or below asking (if they sell above, it probably won’t be by much). • Buyer’s Market: More than six months of inventory; lots of inventory competition. Properties take a while to sell, and often sell below asking. As an example of how the market evolves, let's discuss 2020 in Massachusett's Real Estate. Much of Massachusetts usually hovers between Hypermarkets and Seller's Markets when it comes to Investment Properties. There is an enormous population of Contractors, Investors and Developers, who constantly create competition. During the Covid-19 epidemic, real estate was active, but the road was bumpy with setbacks regarding access to professionals, city departments, mortgage companies, etc.. During the first phases, good Realtors immediately settled into creating 22

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