Steve's Stat's - March 2018
STEVE'S STAT'S FOR MARCH 2018
"How's the market?" That's the number 1 question everyone who works in real estate is asked. What separates good real estate agents from the rest is their ability to answer this question accurately, thoroughly and honestly. When making decisions about your most important investment you want to know that the people you are working with know what they are doing and have a proven track record.
The ABSORPTION RATE is a measure that determines how quickly it will take to sell through the current inventory of homes for sale given current sales activity. This measure indicates whether the market is one which favors the seller (seller's market) or one which favors the buyer (buyers market).
(A) = Active listings - Shippensburg school district: 78
Houses sold in Shippensburg in the period used (3 months) : 62
(PD) = 62/3 = 20.67
(R) = Absorption Rate (measured in months) = A/PD = 3.77 months
The Absorption rate is a measure which indicates how long it will take to sell through current housing inventory levels given the current and most recent sales pace. It is widely accepted that 6 months is a balanced market. Any measure above 6 months would indicate a market which favors the buyer meaning lower sales prices and more marketing time due to higher levels of inventory. Any measure below 6 months indicates a seller's market which can be characterized by lower levels of inventory and higher sales prices. All of this is based on supply and demand economics.
Looking at the sales data over the month of February
Number of homes sold = 22
Median Sales Price = $180,000
Average Days on Market (for the 11 houses that sold) = 146 days
IF YOU NEED TO SELL HERE IS WHAT YOU NEED TO KNOW
If you have a house to sell now is the time to do that and hit the market while inventory is low, mortgage rates are still low for buyers and demand is high. I expect houses to hit the market in March and April. When that happens, more houses will hit the market because there are people waiting for houses to hit the market before they decide to list their own home. I expect inventory to begin to increase as we head in to Spring and I expect prices to stabilize. Interest rates will continue to move upward which will result in downward pressure on prices due to the rising cost of mortgages. Your most opportune time to list a house and sell it for the most money is likely right now.
IF YOU ARE BUYING HERE IS WHAT YOU NEED TO KNOW
If you need to buy you need to know that making good offers is more important now than it has been since the mid 2000's. Good offers include pre-approval letters from local, reputable lenders. Good offers are not overly contingent offers. Good offers are written to be accepted, not rejected or negotiated. With inventory levels as low as we have right now when a house in good condition is listed for a fair price you better believe that you are not the only buyer interested in owning that house. If you want to purchase the house then your offer needs to be more than competitive, it needs to be compelling! We have been selling the houses that we list for sale in days. In some cases I have put houses under contract in less than 48 hours from the time that they were listed for sale. And recently we sold a house before it even went on the market! As inventory remains tight and mortgage interest rates continue to rise the demand for houses to buy will result in tight competition and rising prices.
Broker, Owner, Real Estate Agent
JALEX Real Estate Services
717-552-8340 Cell Phone-text | firstname.lastname@example.org