Video Transcription
Julie Kaley: What’s a hot market? Well, that’s another great question.
A hot market is when we see limited inventory and high demand from buyers. So buyers are out there looking but there’s not a lot of homes for them to choose from. Now, in a hot market, I wouldn’t recommend selling your home in a day. If you do, you might be leaving money on the table. It is advantageous for the seller to get multiple offers in a hot market if possible, so that we can get you the most favorable terms and price on your home.
If there’s more homes on the market than there are buyers, then we have what’s called a buyer’s market. In a buyer’s market you can expect your home to take a little bit longer to sell. Currently in our market right now for Stanislaus and San Joaquin counties, the average days on the market is 30 to 60 days; 30% for Stanislaus County, closer to 60 for San Joaquin County. We can discuss timing and how quickly we think your home can sell in the current market when we meet with you.
It’s really important to look at the absorption rate when we think about the timing for selling of your home. Absorption rate is the term most commonly used in the real estate market to tell us how quickly the current inventory is selling. It is calculated by dividing the average number of sales per month by the total number of homes available.
According to Investopedia an online website, a sellers market would have an absorption rate that equals more than 20% and a buyer’s market would have an absorption rate of less than 15%. Personally, I feel that those numbers are a bit too vast and right now in today’s market, I would say that if it takes longer than 60 to 65 days for your home to sell, we need to look at price and condition.
I hope that helps and again my name is Julie Kaley. I’m your local real estate broker with Assist 2 Sell Central Valley Realty. Reach out to me with any of your real estate questions. (209) 253-8727. Thanks for watching.