Are we in a buyer’s market or a seller’s market? How can you even tell what kind of market you’re in? We’ll tell you everything you need to know today.
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Want to sell your home? Get a home value report
Want to buy a home? Search all homes for sale
This summer was one of the busiest our team has ever seen, and it doesn’t look like the market will slow down anytime soon. August had the highest number of transactions in a month that our team has ever seen!
As we head into fall, what is happening in the market? I am often asked if we are in a buyer’s or seller’s market, so I thought I would go over the latest market trends for you today.
One key factor in determining what kind of market we are currently in is the absorption rate. The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. The absorption rate is calculated by dividing the total number of available homes by the average number of home sales per month.
The absorption rate in Hidalgo County has steadily declined over the past two years as the average days on market fell and the number of home sales increased. Right now, Hidalgo County has an absorption rate of 8.4 months.
Absorption rate only tells part of the story.
To put that in perspective, if the real estate market has less than six months of inventory on the market, it is considered a seller’s market. Six to seven months is considered a balanced market, and anything over seven months is a buyer’s market.
So, if you look at the absorption rate for Hidalgo County, you can determine that we are in a buyer’s market. However, that is just the average absorption rate for the entire market. If you look at certain price ranges or cities, you will see a different story.
For example, we have five to six months of inventory in the $100,000 to $150,000 price range, placing those homes in a seller’s market. Homes priced from $150,000 to $200,000 have 6.4 months of inventory, which makes it a neutral market. Finally, homes priced $200,000 to $250,000 have 11 months of inventory, putting those buyers and sellers in a strong buyer’s market.
If you are considering buying or selling a home, we will take a look at the absorption rate in the area and price range you are interested in so that we can come up with the best strategy for you. If sellers are in a fast-moving area, we will position your home to sell quickly and for top dollar. If buyers are looking for homes that are in a seller’s market, we can help you figure out how aggressive you need to be.
In the meantime, if you have any other questions about our current real estate market, give us a call or send us an email. My team and I would be happy to help you!
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