What does the recent lull in our market mean for your real estate goals? There are actually a few important points to consider.
Now that we’ve reached the summer doldrums, our market has begun to slow down. This begs an important question: What do current conditions mean for buyers and sellers?
If you’re a seller, you will need to have a little bit of patience. As for buyers, it’s a great time to start a home search.
Of course, if this year follows the same annual trends as we’ve seen for the past five years, our market will see a boost in activity after Labor Day.
September and October will likely be a great time for real estate, and we know this because of market trends like the absorption rate.
Simply put, the absorption rate tells us how many months of supply exist within a given price point. This statistic also indicates whether it’s a buyer’s market or a seller’s market.
An absorption rate of approximately six months signals that we’re in a balanced market. Anything above that is a buyer’s market, while anything below shows that conditions favor sellers. It’s that simple.
Moving forward, sellers may be best off waiting until after Labor Day to make their move. Buyers, on the other hand, should consider putting an offer in now.
If you have any other questions, would like more information, or are interested in seeing this week’s free market report, please reach out. We look forward to hearing from you soon.