It can be difficult to tell when the market favors buyers or sellers. However, it's important to know how to tell the difference. In this blog post, we will discuss factors that determine the real estate market and tips on how to take advantage of the current market conditions.
The most crucial factor that determines whether your city is in a buyer's or seller's market is the housing inventory. This is the number of homes currently on the market for sale.
In a buyer's market, there will be more homes for sale than buyers are looking to purchase. This results in lower prices because sellers are competing for buyers' attention. Conversely, in a seller's market, there will be more buyers looking to purchase homes than there are homes for sale. This results in higher prices because buyers are competing against each other for the limited number of available homes.
Days On Market (DOM)
Another factor to consider is the average days on market (DOM). This is the number of days a home spends on the market before being sold. In a buyer's market, homes will spend more time on the market since there are more homes available. But in a seller's market, homes will spend less time on the market because there are more buyers than homes.
The last factor to consider is the absorption rate. This is the number of months it would take to sell all of the homes currently on the market if no new homes were listed for sale. In a buyer's market, the absorption rate will be higher because there are more homes for sale than buyers are looking to purchase. In a seller's market, the absorption rate will be lower because more buyers are looking to buy homes than available homes.
Ready to Buy or Sell A Home?
If you're buying or selling a home, working with an experienced real estate agent will give you an advantage as real estate agents know how to maximize profits in the current market. So if you’re searching for trusted real estate agents in Alabama, we’ll be happy to work alongside you to get you the best possible deal. So give us a call at (334) 791-8830 to discuss your needs.