The Markets of Real Estate

Buyer’s Market-a real estate market benefiting buyers more than sellers.

• Many homes for buyers to choose from
• Slow to stable growth in property value
• Motivated sellers
• Incentives provided by sellers or builders, such as mortgage rate buydowns and home warranties

Seller’s Market-a real estate market benefitting sellers more than buyers.

• Less homes for buyers to choose from
• Stable to fast growth in property value
• Sellers holding out for top dollar
• Increased attention and action from buyers

And the next market isn’t one that’s widely known by the public, and it’s called a…

Transitional Market-a real estate market in between a buyer’s and seller’s market. It can turn into a buyer’s or seller’s market in a very short period of time. Think of it as a board teetering on a point. Just with any slight changes, it will tip over. How do you know when it’s a transitional market? It’s when market analyses produce conflicting results, such as:

• Rising appreciation on home values with rising inventory of homes
• Small difference in listing and selling prices, along with rising average DOM

But now the question is, how are the markets determined? What are the key determining factors of real estate markets? They are the 5 following:

• Average Sales Price – the average price of all homes sold
• Average Listing Price – the average of all listing prices of those homes
• Difference in Average Listing Price and Sales Price – the average difference of what people list their homes for and what those homes eventually sell for
• Average Days on Market – the average length of time that homes are on the market until closing
• Inventory on Hand – how long it would take to sell all of the available homes on the market at the current rate of homes closing

So when you’re selling your home, not only do you need to know your reasons of why you want to sell, but you also have to know the Tucson real estate market, if it’s a buyer’s, seller’s, or a transitional market.

Proactive sellers win. So if you know the market, you’ll be able to position your home to sell in your time frame and price range.

To find previous and current Tucson real estate market reports & statistics, you can find them at the Tucson Association of Realtors website. Click here to be redirected to that webpage.

This entry was posted on Saturday, May 10th, 2008 at 4:58 pm and is filed under For Home Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.