“It’s a buyer’s market!”— Those words strike fear in the heart of all home sellers unless you understand how the laws of supply and demand affect your specific micro-market.
Your micro-market is the little slice of similar properties within the market for all homes. At a minimum, micro-markets are defined by location, price, number of bedrooms and bathrooms, square footage, newly built or existing properties, and mortgage type.
Recently I evaluated two homes in two very different micro-markets.
Micro-market: Oak Park: 3BR/2BA, traditional mortgage, resale, single-family detached, $273K-$423K, 1001 to 2000 sqft
Absorption rate: 2.75 months (Seller’s Market)
Micro-market: Oak Park: 4BR/4BA, traditional mortgage, resale, single-family detached, $450K+, over 3001sqft
Absorption rate: 15.4 months (Buyer’s Market)
Six months is considered to be a balanced market— there are as many buyers as there are sellers. Less than six months it’s a seller’s market where buyer’s outnumber sellers. More than six months it’s a buyer’s market where sellers exceed buyers.
How to calculate your absorption rate: This is where I come in because you need to have access to the Multiple Listing Service to get accurate numbers.
Interested in buying or selling? Want to make home improvements and need a baseline on your home’s current market value? Or are you just curious? For any and all of those reasons I’m happy to help!
Contact me at KCrowell@KoenigRubloff.com or at (708) 488-9280.
Kevin C. Crowell: #Determined!
For over 25 years I worked at the company I built, successfully selling high-tech products in Japan, the world’s most demanding market. My work there required a: close attention to detail, superior customer service, exacting quality, and continuous improvement.