Some content provided by Collins Group Realty
Even if you’re new to the homebuying scene, you’ve probably heard of the term "seller’s market" or "buyer’s market."
It’s important to realize the difference so that you’re prepared when you find that perfect home for you — or you get ready to sell yours.
So, what are the differences?
When there is a surplus of inventory — meaning, when there are more listings that there are buyers — you are in a buyer’s market. You’ll find that prices tend to rise much slower in a buyer’s market. On the other hand, when the number of buyers far exceed the number of available listings, a seller’s market goes into effect. You’ll also find that homes sell much quicker during a seller’s market.
A balanced market occurs when conditions do not necessarily favor the buyer or seller; supply and demand are fairly equal and prices stabilize.
Using today's Concord market stats, we see 111 detached homes for sale, in any condition, location, price, or size for sale in the city. Of those homes, 45 are priced between $800,000 and $1,100,000. The average list price is at $949,000. Those homes are sitting on the market at about 34 days on average. Very different than 5 months ago!
If you look at the same parameters for price point in Concord, a total of 33 homes went pending in about 27 days on average; however, their average list price was only $910,000. Priced right for the location, condition and market one might say.
What is absorption rate?
Absorption rate is calculated by dividing the total amount of available homes by the total number of home sales for the month.
Monthly housing supply refers to how many months it would take to sell all of the current amount of properties, given the current absorption rate. Generally speaking, less than 3 months of inventory indicates a seller’s market and more than 6 months of inventory indicates a buyer’s market. About 3 to 6 months is a balanced market.
The current Concord absorption rate is 1.333 months of supply.
Theoretically, if there were no new homes listed for sale in Concord during the next two months, and buyers only had the 111 homes to choose from, I could be out of a job before the holidays! Bring it on sister!