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
whats
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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