If you’ve been listening to any real estate news lately, you may have heard about recessions, trade wars, tariffs, and a new concept called a “negative interest rate.” What does all this mean?
It seems like the answer changes daily, but the truth is that real estate is very stable. It doesn’t swing drastically one way or the other, and it won’t cause you to lose $100,000 overnight. However, there are still market swings you need to stay on top of.
So, what’s happening right now? We recently transitioned from a hyper seller’s market to a normal seller’s market to just a normal market. In some price ranges, we’ve even transitioned to a buyer’s market. We determine this by using something called “absorption rate documents.” When buying a home, depending on the price range you’re in, you can either be in a seller’s market, a buyer’s market, or a normal market.
Let’s use Tracy as an example. If you look below the $350,000 price range, you’re still in a seller’s market. There’s a lot of demand in this area, and homes are still selling quickly. If you look between $500,000 and $600,000, you’re in a normal market, meaning it should take a home anywhere from three to six months to sell if it’s priced appropriately. If you look anywhere above $1 million, homes are taking anywhere from eight months to two years to sell.
If you’re a seller, knowing the absorption rate (which we produce for you) will tell you what type of market you’re in and how aggressively to price your home.
Don’t let the news scare you. It’s there, but it’s not impacting you the way you think it is. If you have any more questions about our market or you’re thinking of buying or selling, don’t hesitate to reach out to us so we can discuss your real estate goals. We look forward to hearing from you.