Which
way is the market trending?
Knowing that the market is changing before it
is public knowledge is a powerful thing. The Market
Condition Report analyzes Gig Harbors' real estate
market in every price range and indicates if that price range
is seller oriented, buyer oriented, or balanced.
This report can actually show you that the market is changing
before it happens through the trends in the price ranges. During
a sellers market most of the
price ranges in the report will indicate "sellers market" but as
the market starts to change, the higher price ranges will move to "balanced".
Then the higher ranges will start moving to "buyers" and the middle
ranges will move to "balanced". Then the higher and middle ranges
will move to "buyers" and the lower ranges will move to balanced,
and finally most ranges will move into the "buyers market" category.
This trend will happen over several months and by studying the report weekly,
you will know the market is changing months before most people, including
buyers, sellers, real estate investors, and real estate agents.
Is
it a buyers market or a sellers market?
It
seems like most people think they know if it is a buyers market
or a sellers market based on what's going on around them but
the truth is that the over all market might be a buyers market
while
specific price ranges within that market are actually a "balanced
market" or "sellers market". For example, their
may be a high supply of homes in most price ranges while one
range has very low inventory. This range could be balanced or
seller oriented in a market that overall is a buyers market.
Knowing this information is very valuable to sellers in determining
a listing price for their home and for deciding how to respond
to an offer they have received. Buyers can use this information
to decide what type of offer to make or if they should make an
offer at all.
How
do we create this report?
Every week we perfom an MLS download of all the
listings in Gig Harbor that are for sale and pending. We then
divide the Pending Sales by the Homes for sale which gives us
a percentage or ratio. If the ratio is low, 0-45% it is a buyers
market. If the ratio is medium, 45-55%, it is a balanced market.
55% and up is a sellers market. Looking at the actual ratio will
tell you if that price range is strong or week in its type of
market. If a specific range had a 44% ratio you would know that
range was just on the edge of a "buyers market" while
a 24% ratio would indicate it was deep in a "buyers market" -
lots of homes and not many buyers.
We try to
publish a new report every week. If you would like to be notified
by email whenever this report is updated, please email
us and we will be happy to keep you informed.
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