Have you heard? The real estate market is improving! Move already - now is the time to list and sell your home today!
For home owners who purchased at the height of the market in 2005 to 2007, many felt stuck in their homes and that they could not sell. If you've been waiting for the market to improve so you could sell your home, wait no more, and here's why: Absorption Rate.
What is Absorption Rate?
This is perhaps the single best statistic in real estate to gauge the market's health. The absorption rate takes into consideration both supply and demand. In measures the amount of time needed to sell out the current inventory at the current sales pace.
In other words, if we took all the homes in Olympia, WA and didn't add any new listings, how long would it take to sell ALL of the homes with the current amount of buyers? That's absorption rate - measuring supply and demand in a single statistic.
What is a Seller's Market?
A seller's market is when the absorption rate is less than 4 months. This shows that with the current pace of sales, there isn't enough inventory to keep up with the busy buyers. Therefore sellers are favored in this type of environment to be able to sell quickly and sell for a competitive price.
In 2015, homes sales between $1 to $350,000 were all in a seller's market, and home sales between $350,000 to $500,000 were all under 4.6 months. Home sales up to $500,000 made up over 96% of all sales in Thurston County, WA year-to-date.
(A balanced market is when the absorption rate is 4 to 6 months, and a buyer's market is over 6 months. A buyer's market is when we see slow buyer activity combined with an over-supply of listings on the market.)
From 2007 to 2015, here is an animation showing the sales prices between $1 to $500,000 and their absorption rates. As you can see, in 2015, all the columns but the last three are in green, which is a seller's market!
Let's talk about what your home is worth and how the market has improved your home value. I'm here to provide you with the information you need to make the best decision for you and your family. You'll be provided with more market statistics, market analysis for how your home fits into the market, and my 20+ years of real estate experience at your service! Feel free to call, text or email me at your convenience. Looking forward to talking with you soon!