Recognize The Signs & Know Your Market!
So, what’s the market like?
If there is one line that you will get asked over again as a REALTOR®, that’s it!
You might have heard that Springtime is likely to be a Seller’s market & the best time of year to sell (a myth by the way… find out why here) or maybe that nothing ever happens in December.
But what does that mean for you & how do you know which market you are in?
There are 3 Different Real Estate Markets
{SELLER – BUYER – BALANCED}
SELLER’s Market
Cause:
A lot of Buyers looking & only a few homes on the market
{Low Inventory}
Sellers – Excited | Buyers – Frustrated
Market Absorption:
0 – 5 Months
You know you’re in a Seller’s Market when you hear about Buyers competing with each other (Multiple Offers) & Sellers are excited about how much they can get for their homes (often more than asking price).
Buyer’s Market
Cause:
More homes for sale than there are people buying.
{High Inventory}
Sellers – Frustrated | Buyers – Excited
Market Absorption:
6+ Months
You know you’re in a Buyer’s Market when homes stay on the market for a few weeks or more & Seller’s usually have one offer on their home at a time.
Balanced Market
Cause:
Similar number of homes for sale as there are buyers for them.
{Level Inventory}
Sellers – Excited or Frustrated | Buyers – Excited or Frustrated
Market Absorption:
5 – 6 Months
You know you’re in a Balanced Market when Buyer’s have a chance to look a lot of homes to find one that fits their needs & Seller’s will often wait a bit before an offer comes in (some homes will always get a quick offer).
Knowing which market you are in allows you to approach home buying & selling with a wisdom that a lot of people acquire on the fly through trial-and-error.
Heading out into the market with a solid game plan that you & your REALTOR® set out will give you an advantage out of the gate.
You keep hearing about Market Absorption , but what does that mean? Learn the in’s & out’s here.
If you need any information on your market, please reach out — We’re here to help!
Keeping it genuine,
The Edwards Team
The Genuine Blog
