Dramatic Market Shift in Black & White
Ok, so it’s really shown in green (buyer’s market), yellow (balanced market) and red (seller’s market) color crayon. But, as you can see below, approximately one year ago the market was an extreme buyer’s market, based on the same statistics we post weekly for just the downtown market. Three months ago a trend started to emerge. Today, we’re seeing much more of a balance, and even some red which represents a seller’s market. Granted, the economy still has some improvements to make. However, the stats show that the window of opportunity appears to be closing. This however is not a sign that prices will skyrocket any time soon, but more of a sign that the market is simply stabilizing.
Color coding in the image below is based off of absorption rate statistics. The Absorption Rate is the ability of the real estate market to absorb or sell all of the houses for sale in a given amount of time. For example, if 10 homes are sold every month and there are 100 homes for sale, it will take 10 months to sell all of the homes currently for sale. If there are 240 homes for sale, the absorption rate will be 24 months (if there are 10 homes being sold a month). A sellers market is considered 0-3 months, a balanced market is 3-6 months, and a buyers market is over 6 months. The rate of absorption is ever changing, but is a great indication of market trends that we track. The trend is obvious at this time, and the window for buyers is closing. If you want more information, or a personal consultation, we have a great reputation for helping our clients make the best decision based on their individual situation. Contact us.