Click For Your FREE
Home Value

Left Brain
Like What You're Reading? Submit your email to be notified of new articles! Really Simple Syndication

Categories

Archives


What Makes A Buyer’s Market or a Seller’s Market

May 10th, 2009 Categories: Real Estate News

What Makes A Buyer’s Market or a Seller’s Market?

buyers-market-sellers market

 

A buyers market is when there is more than 7 months supply of homes in a given market, a seller’s is when there is less than 6 months supply of homes in a given market and 6 months supply is called a neutral market.

So how do you determine how many months supply of homes on the market?

Also what is a market?

A market is any given set of parameters. Area, Price Range…

So once you pick an area, a price rang…

Then you determine the # Active Listings

Then add the Sale Pending and the Sold listings for the last 60 days

Divide that number by 3, then divide the active listings by it.

 

So let’s go through a run.

I will do a report on Salt Lake County, Single Family Homes.

Using a price range from 0-$250,000

We have

2,740 Active Listings

848 Listings that have a sale pending

702 listings sold in the last 60 days

We add the 848 (pending) and 702 (sold 60 days back) and get 1,550.

We divide the 1,550 by 3 = 516.67

Then we divide 2,740 (active listings) by 516.67 = 5.30 Months Supply of homes.

Based on that we have a slight seller’s market. Not to be confused with the run away seller’s market of ‘04-07. What it means that these seller’s are not taken a beating and giving away the farm to sell.

Because the 100% loan has all but gone away buyers have to come up with at least a 3.5% down payment and are asking the seller to pay the buyer’s closing cost. So sellers are getting about 97-98% of the value.

 

The $250,000-350,000 range is a neutral market with a 6.53 Month supply of homes

Active 1,485

Pending 358

Sold (60 days back) 324

 

The $350,000 and above market is definitely a buyer’s market with 10.56 months supply of homes

 

Active 1,978

Pending 293

Sold (60 days back) 269

 

Now bear in mind these are for Salt Lake County as a whole. You can break it even further and get different results.

Some cities or zip codes in $250-350,000 price range may very well be a buyer’s market and not a neutral market.

This entry was posted on Sunday, May 10th, 2009 at 5:24 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  1. Potential Flood of new Salt Lake Luxury Foreclosures | Salt Lake Luxury Foreclosures

    [...] See What Makes A Buyers Market or a Seller’s Market [...]

Leave a Reply

Copyright © 2007 3 Pounds of Real Estate     Agent Login     Design by Real Estate Tomato     Powered by Tomato Blogs