How to Decide if You Should Buy or Sell Now
Buy or Sell now? Is now the right time to buy or sell a home? The absorption rate is the way to know for sure!
WHAT IS ABSORPTION RATE?
It’s is a metric used by some real estate professionals to measure a real estate market’s internal supply and demand. It basically uses the current inventory of homes (supply) and recent sales history (demand) to calculate the market’s current sales rate.
Why Is Absorption Rate Important?
Markets are characterized by the absorption rate as follows (see chart above for additional details):
Buyer’s Market: Over 6 months of supply
Balanced/Transitional Market: 5 to 6 months of supply
Seller’s Market: Less than 5 months of supply
Obviously, there is a lot that goes into buying or selling a home than just the numbers. However, the absorption rate helps buyers and sellers to understand the current state of the real estate market in order to make more informed decisions about their next purchase or sale.
If you are thinking of buying or selling a home or already decided to buy or sell now the home in San Diego County don’t hesitate to contact Broadpoint properties agents. We are happy to assist you in the buying or selling process.