Despite the winter weather we are in the midst of in MA over the past few days, we are beginning to see some activity that is the beginning of the spring market.
When supply exceeds demand, buyers have the upper hand. When we talk about a "seller's market" or "buyer's market", what does that really mean?
A seller's market is when the supply, or commonly referred to as "inventory" is less than 6 months.
A buyer's market is when the inventory is more than 6 months.
So how is this determined?
It's called an absorption rate and it is calculated by the dividing the number of active listings by the number of sold properties over the past year.
Nationally, the current supply of single family homes for sale now stands at 12.5 months. That means that at today's pace of home sales, it would take 12 1/2 months for the existing inventory to sell. For the buyer, that means lots of choices, lots of negotiating power, and smart sellers are competing for your business.
Locally, our numbers are different.
Over the next few days, I'll list, by town what's going on.
Acton 62 homes on the market vs. 188 sales in the past 12 months
This means that there is currently a 4 month supply of inventory on the market.
Additional information is:
120 Average days on market vs. 77 days on the market for the sold properties
$514,950 Median price vs. $532,500 Median Price of sold properties
In Acton, the sold properties were on average, on the market 46% less time than those that are currently for sale, and the median sale price was 3% higher than those still on the market.
Time and price...these are the key numbers.
So, although we have a seller's market according to the supply of inventory, the houses that are selling are priced to compete with the other properties on the market.
Watch for the next town I'll profile!