understanding the current market
DESCRIPTION
May absorption rates for selected towns in north central Mass.TRANSCRIPT
Wiley Cordone
Choosing the Right Market
Absorption RatesThe absorption rate is the number of
months it would take to sell the currently listed homes in the market. That sounds simple, and the math is
for the most part.
Active Homes/Sold Homes Over Same Time Period = Number of Months to Sell Out Current Homes IF no new
homes come on the market3 – 6 months of
inventory
6 – 9 months of inventory
The fewer months of inventory, the stronger the seller’s market, the
higher the number the stronger the buyer’s market.
0 - 2 months of inventory
TYPE OF MARKET
Clearly, prices are higher in a seller’s market and lower in a buyer’s
market, but it’s important for buyers to know how much above or below
list price homes are selling for.
Why You Care
Multiple OffersCan’t price too low
Buyer Financing MattersFewer Inspection
NegotiationsChain of ContingenciesWin/Win Transactions
with Transparency
Short Window of time, can be great for Win/Win transactions IF everyone
understands shifting reality
Qualified buyers have more choices
Home Inspection more likely to kill a deal
More time to decide, search.
Win/Win Transactions with Education
Buying in Seller’s Market
What You Control What the Market Controls
How many homes are available.
The location, condition, and price.
Financing options for other buyers.
Speed of closing (assuming you follow through and
choose your team wisely).
How flexible you are on location, condition, and price.
How quickly you can make a decision.
How much education you get/research you do.
Who you choose for your team.
May 2016 In Littleton
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=+/- =
29122months
2%
May 2016 In Stow
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=+/- =
30103months
1%
May 2016 In Bolton
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=+/- =
41114months
1%
May 2016 In Berlin
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=+/- =
933months
5%
Last Month In Ayre
¿
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=+/- =
6920days
1%
Last Month In Shirley
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=+/- =
2245months
6%