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The current real estate market presents important factors that buyers and sellers need to understand. One key concept is the absorption rate, which refers to how long it would take for all the current inventory to sell if no new homes were listed. When the rate is less than six months, it is considered a seller’s market. More than six months indicates a buyer’s market. Around five and a half to six and a half months is a neutral market where neither side holds a clear advantage.
Inventory levels are also continuing to increase. While homes are still selling, the rise in available properties is leading to longer absorption rates. This means that sellers need to do more to make their homes stand out. Listing a home without preparation can lead to extended time on the market. When that happens, pricing often has to be reduced, which can result in financial loss. Pricing the home strategically and completing necessary repairs from the beginning is essential.
What this means for buyers. Buyers are also affected. With new listings appearing regularly and ongoing price reductions, it can be difficult to make a decision. Some may assume that waiting will bring a better price or a better home tomorrow. While that may be true in some cases, homes that are priced well still sell quickly. It is important not to pass on a strong opportunity because of uncertainty about what might come next.
Choosing the right home is like choosing a long-term partner. Once you find a home that meets your needs and most of your wants, it is best to commit to it and stop looking. Sellers should focus on showing their homes in the best light by making repairs, decluttering, and ensuring the home is clean and presentable. Buyers should not hesitate when they find the right home.
If you are planning to buy or sell and would like strategies tailored to your situation, feel free to reach out. You can call me at (208) 431-7609 or send an email to Desi@soldbyrevista.com. I look forward to hearing from you.
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