Real Estate Tip of the Week: Feeling the Change in the Market
Sometimes, change is easy to spot – i.e., winter to spring, or night to day. But with real estate, it can be hard to notice a shift from a buyer’s market to a seller’s market…at least, not right away.
Here are some essential signs that the market in your area is cooling down and what to do about it.
Days on the Market
As demands decrease, homes sit on the market for longer. In order to help your clients sell, price their properties using the MLS to track how the days on the market correlate with the price points in the area.
If the housing supply is exceeding the current demand, you and your buyer might want to look for price reductions. To calculate the absorption rate in your local area, divide the number of homes sold in a given month by the total number of homes available during that month.
If you’re seeing more and more orange cones and hard hats, it might be a good sign for buyers. Increases in new construction can provide new opportunities!
As a real estate agent, it’s always a good idea to keep your eye on changes in real estate weather. Being strategic on how to market homes and how to appeal to buyers and sellers is key in an ever-changing market.