St George Real Estate Supply and Demand
St George real estate supply and demand basics, to include the increasing or decreasing supply of homes (rate of absorption), can help buyers and sellers utilize their St George Realtor to plan for the future. Supply and demand tell us almost everything about our markets crazy interplays. If supply of houses on the market goes up, generally speaking the demand goes down because there are fewer buyers to satisfy all that needs purchasing. If supply goes down, demand goes up because more people want fewer available places. Then sellers can ask higher prices. Many factors can go into real estate supply and demand, but overall supply and demand factors, not just in real estate, but in the labor market and in the economy at large, can lead us to ask, "Is this a good or bad market?".
Rate of Absorption
St George Utah real estate Rate of Absorption has to do with taking the current supply of inventory of homes, not adding to it, and then with the rate of how many sales are taking place in a given month, how long would it take to sell that current supply of homes? This factor can indicate the rate at which the current supply of homes is being increased or decreased on the market. If you are a buyer or seller, projections would lead one to believe with dwindling or swelling supply, as to whether or not home prices are going to be increasing, decreasing or staying about the same. Assessing these factors over the life-cycle of a listing, with the listing agent staying on top of what the market is doing, can really help sellers to know to what degree should they do or not do a price reduction.
Assessing the absorption rate can also help one to figure out if it is increasingly becoming more a buyers market or less a buyers market.
It should be understood, that month to month variations are NOT typically a good gauge of trends, where as assessing year-over-year or at least six months worth can help reveal real patterns. Realtors are often blinded by the month to month pick-up or slow down in the market and unless they are consulting with a longer time period of statistics, there is always that subjective reporting involved with that individual St George Realtors business and not the correct depiction of the market at large.
Brian helps his buyer and sellers keep a longer view that takes in how the United States National economic outlook affects St George real estate absorption rate.